This article is from the Australian Property Journal archive
A NATIONAL large format retail portfolio leased to The Good Guys has sold for a whopping $92 million, making it the largest group transaction of its kind in the Australian market this year.
Savills directors Clinton Baxter, Nick Peden and Steven Lerche sold the nine centres across four states, on behalf of the Muir family.
The properties are located in Victoria (Thomastown, Geelong, Bendigo and Ballarat), New South Wales (Caringbah and Ballina), Queensland (Ipswich and Cairns) and Western Australia (O’Connor).
The sale prices range from $5.2 million for the Bendigo property up to almost $30 million for the Caringbah property. The yields range from around 6.25% for the capital city properties up to almost 8.00% for regional properties.
Baxter said the sale campaign attracted enormous interest from local and offshore investors ranging from private investors for single assets, to major corporate investment groups wishing to purchase multiple assets.
“One such investment group snapped up five properties in 3 states for a total value of $63 million.
“Of the retail properties that have come to market in recent times none that have offered such a combination of geographical diversity, with exceptional underlying land value and a blue-chip tenancy profile,”
“We expected strong interest from private investors seeking individual properties, but were particularly surprised by the numerous portfolio buyers seeking multiple properties across several states.
“We simply couldn’t satisfy all the portfolio offers due to overlapping property requirements, and ultimately chose to transact 5 of the properties with a Sydney-based investment fund and sell the other properties individually,” Baxter said.
Peden said that the wide price range of the assets, exceptional main road locations in key commercial precincts, attractive rental returns, together with blue-chip tenancy profiles appealed to a wide range of investors ranging from SMSFs, private investors, syndicators and property funds, whether based locally or off-shore.
“With The Good Guys being owned by ASX-listed retail powerhouse JB Hi-Fi Limited, investors feel extremely comfortable with the long-term security of the investment. All properties are in proven commercial locations, with a long history of successful trade,” Lerche said.
Savills will be selling several additional properties in coming weeks, to complete the divestment for the Muir family.
“Of the original portfolio of properties we have been handling for the Muir family, it was crucial to the process that we finalised the single portfolio transaction before allowing individual properties to be sold.
“Now that has occurred, we are busy transacting the individual properties, with the opportunity offering exceptional value for investors at attractive yields,” Baxter said.
Australian Property Journal
