This article is from the Australian Property Journal archive
INVESTORS remained in their winter lull for the Burgess Rawson portfolio auction in Sydney yesterday, with seven of 12 offerings selling under the hammer after a strong start to proceedings.
David Scholes of Auctionworks handled the proceedings, held at Doltone House in Hyde Park.
While mostly the domain of retail and specialised asset classes, the event’s most sizeable sale was of a 1.68-hectare industrial site in Wollongong’s Coniston, just north of the Port Kembla Steelworks.
The 17 John Cleary Place property was offered with two tenants across two buildings of a combined 4,476 sqm of improvements, as well as development application stage two approval for another 1,333 sqm.
Occupants include global group Weir Minerals and reinforced steel manufacturer Mesh & Bar, both on five-year lease, and returning a total net income of around $721,131 per annum plus GST.
Proceedings opened with the $756,000 sale of the Flour Salt Water organic bakery premises at 85-87 Princes Highway in Milton in the New South Wales south coast region. Zoned B2 Local Centre, the 158 sqm site has a 107 sqm building with a 3+3+3-year lease bringing $44,696 per annum plus GST.
A retail complex in Gunnedah, including tenants Supercheap Auto and Cellarbrations, traded for $3.85 million. The 2,969 sqm site at 222-224 Conadilly Street has a combined 150 metres of frontage with a building area of 2,738 sqm with large customer car park at the rear. Net return is $361,326 per annum plus GST, with some leases running until 2026 with options.
The Coffee Club oceanfront site in Brisbane’s Redcliffe changed hands for $2.68 million, and was marketed as a development opportunity, with future potential for a 12-storey structure. The 171 Redcliffe Parade café of 332 sqm is on a 405 sqm site and has use of the street front alfresco dining area, and is leased to the company until 2020 with a seven-year option to 2027, currently bringing $156,088.88 per annum net.
Another Queensland asset to sell under the hammer was the Little Scholars childcare centre at 12 Tathra Court in Redland Bay, fetching $3.3 million. The 82-place centre sold with a 10-year lease until June 2026 with four options of five years each, and currently returns $196,960 per annum plus GST.
One investor a high exposure Hungry Jack’s site a 1-27 Pacific Highway in Grafton, part of a complex that also has a Bunnings, Subway and Supercheap Auto. The 714 sqm property has a 305 sqm building sold for $2.8 million and returns $152,303 per annum plus GST net.
In the Snowy Mountains region, a two-storey retail and office corner building of 858 sqm in Cooma, leased to national and government-funded tenants, traded for $1.75 million. Refurbished in 2013, the building’s tenants include NewsXpress, with two lottery terminals making it the only Lotto seller in Cooma; employment organisation Max Solutions; Monaro Family Supporter; and MBC Employment, with a combined net return of $144,297 per annum plus GST.
Burgess Rawson will hold the Melbourne edition of its portfolio auction today at Crown Casino from 11am.
Australian Property Journal
