Forecourts
In this section, we explore the forecourts markets in 2024 and provide predictions for the sector in 2025.
Market Overview
Deal activity in the petrol filling stations (PFS) market continued in the same vein as H2 2023, with the market remaining robust, being driven by need.
Demand for PFS businesses remained strong with buyers continually outnumbering sellers, and by Q3 2024 we sold more sites than in all of 2023. In 2024, there was a 47% increase in the number of forecourt exchanges between 2023 and 2024.
Many operators have made significant investments in their real estate to attract customers to the forecourt. Notable market activity included MFG's acquisition of 337 Morrisons forecourts for £2.5 billion and EG on the Move's purchase of 34 ASDA sites for £228 million.
The top forecourt operators have become more selective about what they are prepared to buy or develop. Sites will only attract top pricing if they are large enough to accommodate future development or redevelopment of various income-driving aspects.
Steve Rodell
Managing Director – Retail & Leisure
Key Market Trends
As of 31 March 2024 compared with figures taken on 31 March 2023:
Average Sale by Price
Market Predictions 2025
- The increasing costs announced in the Chancellor’s Budget will reduce the profitability of some forecourts. If operators have to increase their prices, there may be some inflationary pressure. However, as forecourts are needs-based businesses, operators will be able to off-load costs onto the consumer
- Fuel costs will rise as confirmed in the Budget, however as most UK vehicles are fuel-run, this will not have a substantial impact on operators. As there were no new incentives in the Budget for purchasing EVs, no immediate effect on fuel demand is expected in 2025
- Some owners who are thinking of selling are likely to market their business sooner to avoid Capital Gains Tax (CGT) or Inheritance tax (IT) which will come into effect in April 2025
- Strong demand for forecourts is expected to continue; however, buyers may be more cautious buyers and account for increased costs when offering
- As costs rise, continued divestment from corporate multiple retailers is expected in 2025
Case Studies
Project Swiss, UK-wide
In the second tranche of this group disposal for Ascona Group, we sold five petrol forecourts. The stations were located across the Midlands, London and the South West.
Project Heath, East and Midlands
The sale of two petrol stations in administration located across the East and Midlands. Insolvency Practitioners, Griffins, required an accelerated sale process which optimised proceeds for the creditors.
Project Cotsworld, South West
A pair of family-run petrol filling stations in the Cotswolds sold to Niza Enterprises. The new owners have ambitious plans to develop the sites further, with a focus on the retail units.