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12.25% Total Returns? This Trust’s Fuel and Convenience Strategy Is Pumping Up Profits
- Published October 21, 2024 12:00PM UTC
- Publisher Jade Miguel
- Categories Capital Insights, Landing, Trending
The Queensland Property Strategy Turning Heads—And Profits
In the world of commercial property investment, finding the next big opportunity is like striking gold. And right now, there’s a gold rush happening in Queensland, with Amplify, a Queensland-based Funds Manager, leading the charge. Let’s cut through the noise and see what’s really going on.
The Amplify Edge: Local Know-How Meets Investment Savvy
Imagine having over 100 years of collective experience in property investment at your fingertips. That’s what Amplify brings to the table. Peter Rossi, their Chief Investment Officer, makes it clear: Amplify isn’t just about crunching numbers; it’s about leveraging their local expertise in Queensland to find real value in the commercial property market.
Amplify has a knack for spotting hidden gems in the commercial property market that others have often overlooked. They source A-grade investments that are ignored or mispriced by the general market and represent good buying opportunities.
Big Returns, Bigger Plans: How They Target 12.25% in Total Returns
Let’s talk about returns, because that’s what keeps investors coming back. Amplify is targeting a12.25% total return, broken down into an average 8.5% distribution p.a. return paid quarterly plus capital gains. Rossi explains the strategic approach:
“The capital gains are underpinned by a 3% per annum guaranteed increase in the rent that comes from Chevron.”
Amplify focuses on assets that are located in strong and diverse economic locations, with reliable recurring cash flow from long leases to strong companies. These assets feature income growth from certain rental increases embedded in the leases, offering well-located properties with value-add potential.
Beyond the Beaches: Queensland’s Untapped Investment Potential
Amplify isn’t betting on Queensland because of the great weather. They see a diverse economic landscape ripe for investment. Rossi emphasises their regional approach over metropolitan hotspots:
“Statistics show that there’s under half a car per thousand electric vehicles outside the built-up metropolitan areas,” he notes. This regional focus allows Amplify to identify untapped potential across Queensland’s economic arteries.
Their investment strategy isn’t limited to a few select areas but spans high-volume highway sites across the state. As Rossi adds, “…we’ve chosen highway sites, which are high-volume sites servicing the logistic traffic, the truckies.”
Electric Vehicles: Threat or Opportunity?
The rise of electric vehicles (EVs) has sparked uncertainty, but conversely, Amplify sees opportunity. While fuel sales will not disappear anytime soon, convenience retail is the future. Amplify’s assets are poised to benefit from this shift, recognising that service stations will likely make more from snacks and other retail items than from fuel in the future.
Managing Risk: Diversified Portfolio
One of Amplify’s strengths is their risk management approach. Rossi explains their diversified portfolio, noting:
“If you took an Armageddon scenario…we’ve still got six other assets in our portfolio that continue to pay the returns to investors.”
This diversified strategy helps insulate investors from potential downturns, ensuring consistent returns even in challenging market conditions.
The Amplify Playbook
So, what’s Amplify’s secret sauce? It’s straightforward but effective:
- Target properties with long leases to solid companies
- Look for built-in rental increases
- Focus on assets with value-add potential
This strategy requires market expertise and a keen eye, which Amplify consistently brings to the table.
Transparency: More Than Just a Buzzword
In an industry often clouded by secrecy, Amplify stands out by offering clear communication with investors. “We’re an open book,” Rossi says. Investors can expect full transparency and access to answers whenever they have questions.
The Amplify Advantage: Why Queensland’s Future is Bright
In a world where every investment decision matters, this organisation is making smart, strategic moves that have set them up for long-term success. Leveraging a century of property investment experience, deep local market knowledge, and a sharp focus on high-value commercial assets, they’re not just investing in properties—they’re investing in Queensland’s future.
As the state continues to grow, Amplify’s well-positioned portfolio, backed by blue-chip tenants like Chevron Australia Products, is poised for strong returns. Their ability to adapt to market shifts, such as the rise of electric vehicles, ensures they remain ahead of the curve. For investors looking to secure a combination of growth and steady income, this Trust is offering a rare opportunity to invest in one of Australia’s most promising markets.
Conclusion: The Smart Play for Future-Proof Investing
Amplify’s combination of strategic property acquisitions, strong rental income growth, and a deep understanding of Queensland’s unique economic drivers creates a powerful investment platform. Their clear focus on long-term value creation—backed by strong tenants, secure leases, and value-add potential—makes them a compelling choice for investors seeking resilience and growth.
With a proven track record, transparent communication, and a forward-thinking approach, Amplify is positioning itself for continued success. As they continue to tap into overlooked opportunities across Queensland, the potential for growth is only set to increase. If you’re looking to invest in Queensland’s bright future, reach out to Peter Rossi today at [email protected] or +61 407 179 389, and join them on this exciting journey. Visit the Fuel and Convenience Trust Investor Portal or the Amplify website for more information.