This article is from the Australian Property Journal archive
INVESTORS intent on some last Christmas shopping have cleared the shelves at the last Burgess Rawson portfolio auction of the year, snapping up more than $43 million worth of assets under the hammer.
The 100% clearance rate at the Melbourne event followed an 81% success rate at the previous day’s edition of the series in Sydney, at which $52 million of property sold.
Twelve assets sold yesterday at the auction overseen by Auctionworks’ David Scholes. Three were sold a prior – a NAB branch in southern Queensland, a diesel facility in Brisbane and a Bakehouse in northern Melbourne – while the auction of a Cheap as Chips in Bairnsdale was postponed.
The opening offerings were part of a large format precinct at 88-202 Wayne Goss Dr in Berrinba, in Logan City, and achieved some of the day’s tighter yields. A Starbucks coffee outlet with a new 12 year lease on 1,982 sqm of land sold for $3,754,500 on a net yield of under 4.2%, and the neighbouring Bridgestone workshop sold on a 4.4% yield with a new 10 year lease, fetching $2,265,000.
A Sparkles Car Wash next door changed hands for $1,643,000, representing a 5.45% yield, also with a new 10 year deal.
The Cranbourne area in Melbourne’s south east was home to the biggest prices realised. An investor bought the United petrol station at 1655 Thompsons Rd for $7.3 million with a net annual return of $398,704 plus GST and outgoings. The corner site of 3,662 sqm is leased for 15 years with options to 2054.
In Cranbourne West, the Imagine Childcare & Kindergarten sold for $6.9 million with a new 20 year triple net lease plus options that brings net rent of $385,516 plus GST each year. It is on 2,670 sqm of land within the Lochaven Residential Estate.
Another Melbourne childcare centre, in Melton, was bought for $2,641,000. Mayfield Childcare leases the 1,227 sqm site with commercial 1 zoning until 2025 with options to 2040, and pays net rent of $155,000 per year, plus GST.
Rounding out the fuel station sales was a 7-Eleven site on 1.92 hectares of land in Logan, which attracted a winning bid of $6,050,000. It has a lease to 2030 with options and brings $290,867 plus GST each year with 3.5% annual increases.
Also selling under the hammer were:
- A central Rockhampton Red Rooster for $3,040,000, leased to 2025 with options, on a yield of about 5.65%
- A Vinnies retail property in Melbourne’s northern suburb of Campbellfield for $2,090,000, on a 4.88% yield. It is on a corner site of 2,397 sqm and is leased to 2024 with options to 2039
- An indoor skate park and 99 Bikes outlet the Sunshine Coast, located opposite Bunnings and Anaconda. The warehouse of 1,127 sqm is on 1.27 hectares of land with dual leases to 2026 plus options, and sold for $3,055,000 on a circa 6.4% yield.
- A corner office complex in Bendigo leased to four tenants, including Programmed, which netted $4,010,000. The building has a two level 967 sqm office complex that has been fully occupied since a major refurbishment in 2002, and bring annual rent of $254,952 plus GST. It is perched on a triple fronted site of 1,023 sqm with commercial 1 zoning.
- An op shop of 645 sqm in Colac leased to a longstanding business for 25 years, with a three year lease plus options to 2029. It sold for $645,000 and brings net yearly income of $48,000.
