This article is from the Australian Property Journal archive
A REGIONAL Queensland Woolworths has headlined the Burgess Rawson portfolio auctions in Melbourne, selling for $13 million.
Of the 22 properties offered at proceedings, held at Crown Casino and overseen by David Scholes of Auctionworks, 12 were located in Victoria, of which 10 sold.
Childcare centre assets provided the support cast, accounting for five sales following their starring role at Burgess Rawson’s Sydney auctions the previous day.
Another Queensland property, a 1,272sqm Red Rooster site at 2 Leda Drive in Shailer Park in Logan City, accounted for the day’s tightest yield as well – selling for $3.345 million.
That was followed by a three-level St Kilda freehold building with retail space and conversion potential, which sold for $1.61 million on a 4.21% yield.
Another Red Rooster site, at 62-64 High Street in the border town of Wodonga, sold for $2.71 million on a 5.04% yield.
But it was the refurbished 4,105sqm Woolworths at 280-294 Adelaide Street in Maryborough, on the Fraser Coast, that traded at what was by far the day’s biggest price tag, at $13 million.
The 6,852sqm CBD corner site has a dual frontage of 173 metres and 149 on-site car spaces, and sold with a 20-year lease until 2033 plus 10-year options until 2063, returning $778,034 per annum and traded on a 5.98% yield.
None of the day’s yields quite approached those seen the day before in Sydney, however, which saw five childcare assets in the metropolitan area trade between 3.6% and 4.1%. These were led by a Vaucluse childcare centre at 5 Billong Avenue selling for $4.425 million on a 3.6% yield, and a Maroubra childcare centre at 91 Paine Street for $3.53 million 3.7%.
The five childcare centres the sold at Melbourne’s auctions traded at around the sub-5% mark:
- 15-19 White Street, Kilmore sold for $1.925 million, returning $114,400 per annum net plus GST, 5.94% yield – 2,540sqm corner site with a 15-year lease to G8 Education and options until 2046
- 412 Lawrence Street, Wodonga sold for $1.77 million, returning $97,344per annum net plus GST, 5.5% yield – 1,763sqm site with a 15-year lease to G8 Education and options until 2049
- 79 Foleys Road, Deer Park sold for $4.05 million, returning $216,369per annum net plus GST, 5.34% yield – 2,272sqm site with a 613sqm facility for 90 places, leased to G8 Education until 2022 with two options until 2042
- 415 High Street, Lalor sold for $4.57 million, returning $284,586per annum net, 6.22% yield – 1,528sqm corner site with a new 20-year lease to Think Childcare with 10-year options to 2056
- 33 James Melrose Drive, Brookfield sold for $4.185 million, returning $252,069 per annum net plus GST, 6.02% – 2,895sqm site with an 859sqm facility for 96 places, leased to Eclipse until 2025 with options until 2045
Other sales at the Crown Casino proceedings included:
- 71 The Esplanade, Paynesville sold for $1.61 million, 6.85% yield – 1,044sqm Foodworks supermarket sold with a five-year lease until 2020 and options until 2035
- 1202-1204 Mountain Highway, The Basin sold for $4.035 million, 6.2% yield – 2,032sqm United service station corner site with a brand-new triple-net lease until 2031, with options until 2051
- 69 Victoria Street, corner Sydney Street, Mackay, QLD sold for $4.27 million, 10% – 1,272sqm NAB corner freehold site sold with a renewed lease from October 2017 with options until 2023
Australian Property Journal
