This article is from the Australian Property Journal archive
CHILDCARE centres and fast food outlets have headlined a retail portfolio auction that saw 14 out of 15 properties sell under the hammer for a combined $58.8 million.
All five nationally tenanted fast-food investments sold at the Cushman & Wakefield event. The Dee Why KFC in Sydney sold for $7.22 million on a yield of 3.43%, a Hungry Jack’s in Brisbane’s Springfield for just over $5 million on a 4.06% yield, and a McDonald’s in Scone, in the Hunter region, fetched $5.8 million at 5.08%.
In the same week, Cushman & Wakefield also completed the off market sale of a property leased to Guzman y Gomez in Heatherbrae, Newcastle for $3.5 million on a 5.25% yield.
Seven childcare centres in New South Wales and Queensland sold individually for a combined $23,790,000, with average yields of 5.5%. Among those was a Play & Learn Centre in Thornlands, Brisbane, selling for $5.5 million on a 5.53% yield, and a centre in south western Sydney’s Campbelltown for $4,181,000 on a yield of 5.51%.
Other assets knocked down at auction were a Mitre 10 in Airlie Beach for $5.4 million, on a 6.02% yield, and a NAB branch in Wagga Wagga, New South Wales, selling for $2.45m on a 6.35% yield. Both assets sold significantly above reserve.
Cushman & Wakefield’s November portfolio auction saw 12 properties sell at a combined value of $59.81 million, led by six Woolworths Caltex branded fuel and convenience retail assets that accounted for more than $40 million of the total, and an Officeworks in Hervey Bay that sold after auction for $6.22 million.
“Given their focus on yield, high net worth investors continue to aggressively target commercial property investments with long-term leases to blue chip tenants in resilient industries,” the agents said.
“The RBA has signalled that interest rates are likely to remain low for the next three years, so we expect demand for alternative assets will build into 2021 as investors seek higher yielding, defensive investment opportunities to bolster their portfolios.”
Investors have been stuffing their Christmas stockings over the past week. They cleared the shelves at the last Burgess Rawson portfolio auction of the year in Melbourne, snapping up more than $43 million worth of assets under the hammer, following an 81% success rate at the previous day’s edition of the series in Sydney, at which $52 million of property sold.
