Viva Energy is reportedly considering the sale of a portfolio of petrol stations as part of a broader strategy to unlock capital tied up in real estate while retaining operational control of its assets. This approach, commonly known as a sale-and-leaseback, has gained traction among corporations seeking to improve liquidity without divesting core businesses. As of December, Viva’s property, plant, and equipment were valued at approximately A$2.97 billion.

While Charter Hall has extensive experience with sale-and-leaseback transactions and holds a significant stake in retail convenience properties, it is not currently believed to be a bidder for Viva’s assets. Charter Hall, in partnership with GIC and its listed retail fund, owns a 49 percent interest in a portfolio of 204 convenience retail sites leased to Ampol across Australia. These assets benefit from long-term leases, essential service tenants, and high-traffic locations, characteristics that have made service stations and convenience retail properties attractive investments.

Viva expanded its retail footprint in 2023 with the acquisition of the On The Run fuel convenience store business for A$1.15 billion from Peregrine, adding 205 company-owned stores to its portfolio and aiming to operate more than 1,000 locations nationwide.

The company is also managing ongoing challenges following a fire earlier this year at its Geelong refinery, which temporarily curtailed petrol production to roughly 60 percent of normal capacity. Viva anticipates restoring output to over 90 percent as inspections conclude and maintains insurance coverage for both property damage and business interruption. The incident has intensified scrutiny of Viva’s asset base and its exposure to market conditions amid tight fuel supply.

Endeavour Group, another major corporate, is reportedly exploring options for a potential sale or leaseback of its property portfolio, valued at about A$500 million. Charter Hall’s prior acquisition of ALE Property Group, which leases pub properties to Endeavour, positions it as a likely participant should Endeavour proceed with an asset-light strategy. Endeavour chief executive Jayne Hrdlicka has signaled a focus on reducing asset ownership as part of the company’s transformation, following a significant share price decline since its 2021 demerger from Woolworths.

Viva declined to comment on the potential sale. The company’s shares have risen 7.7 percent so far this year.