Service station valuations for property and going concerns.
Independent valuations of freehold investments, operating service stations and leasehold interests across Australia. Our property and business specialists analyse the tenure, trading performance and market evidence behind the value.
Define the interest before the value.
A service station may be held as a leased freehold investment, an owner-operated freehold going concern or a leasehold going concern. Each interest has different rights, cash flows and risks. We establish what is included in the valuation, including the property, business, plant and any relevant goodwill, before selecting the methods and evidence.
Service station interests we value.
Freehold investments
Leased properties assessed against the rent, lease covenant, term, site attributes and investment sales evidence.
Freehold going concerns
Land and operating business considered with maintainable earnings, fuel and shop trading, capital needs and market transactions.
Leasehold interests
Tenant interests assessed against lease rights and obligations, sustainable trading, rent and the remaining term.
We also assist with market rent, compulsory acquisition, disputes, lending, financial reporting and transaction due diligence.
Trading figures need context.
Fuel throughput alone does not establish value. We review the earnings that a market participant could reasonably sustain and test them against the physical site, contractual position and comparable transactions.
- Fuel volumes, gross margins, rebates and supply arrangements
- Convenience retail, food and other revenue streams
- Historical accounts, normalised expenses and maintainable earnings
- Lease terms, rent reviews, options and operating restrictions
- Competition, access, traffic exposure and site configuration
- Plant, environmental information, capital expenditure and market evidence
From scope to a reasoned conclusion.
The reporting is tailored to the valuation purpose, interest and available evidence.
Confirm the brief
Identify the property and business interests, valuation date, purpose and any required assumptions.
Analyse the operation
Inspect the site, review leases and supply terms, test trading results and examine relevant sales and rents.
Reconcile value
Apply suitable income and market approaches, test material sensitivities and explain the conclusion.
Common questions.
We can tailor the scope to a single interest or a more complex transaction.
Can you value the property and business separately?
Yes, where the brief and evidence support separate conclusions. We define the interest and inclusions so the property, plant, business and any goodwill are treated consistently.
Is a discounted cash flow always required?
No. A discounted cash flow may be appropriate for a going concern, alongside capitalisation, maintainable earnings and transaction evidence. The methods depend on the interest, tenure and quality of the information.
Can you assess market rent for a service station?
Yes. We examine the lease terms, comparable rents and the trading capacity of the premises where relevant, while distinguishing the property's rental value from the operator's personal goodwill.
What information should we provide?
Usually the title and lease, site plans, fuel and shop sales, financial statements, supply agreements, plant details and any environmental or capital works information. We provide a tailored list after reviewing the brief.
Discuss your service station valuation.
Tell us the location, interest to be valued and purpose of the report. We will confirm the scope, fee and timeframe.