Convenience Retail Reit (CRR AU) plans to raise up to US$125m in its IPO. The company will own service stations spread across the eastern states of Australia.

While the headline yield of 6.8% FY19 looks appealing, however, it is only 40 bps higher than that offered by Viva Energy, even though Viva Energy is nearly 7x larger in terms of asset base and appears to be operationally better positioned. Moreover, the company remains a small player and given its size we fail to see why it deserves to list at a premium to book. 

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