Banner Asset Management has tipped petrol stations and convenience retail assets to outperform other commercial property asset classes in a higher interest rate environment, after raising $50 million for a specialist property fund targeting the popular sector.

The Melbourne-based fund manager and non-bank lender expects to grow its Service Station & Convenience Store Property Fund into a $200 million-plus investment portfolio within 12 months and hit $500 million within three years through a strategy of funding new developments and acquiring completed properties.