This article is from the Australian Property Journal archive
INVESTORS have snapped up more than $30 million worth of commercial property at the Burgess Rawson portfolio auction in Sydney, including KFC outlet in Forster at sub 3% yield.
The latest Sydney edition of the series was held ahead of today’s $150 million event in Melbourne, and saw 15 out of 20 properties offered sell, and another before going to auction.
Billed as an entry-level investment, the KFC in Forster sold for $2.83 million at an eye-watering 2.93% yield, with a 10-year lease to June 2026 plus dual five-year options. It is perched opposite a Stockland shopping centre with Woolworths, Coles and Hungry Jack’s, and on a 1,975 sqm main road site.
Another regional NSW KFC site, in Mudgee, was sold for $3.7 million on a yield of 4.98%. This restaurant is on a town centre site of 1,719 sqm.
A block of five Coffs Harbour apartments sold for just over $2 million. The 1.046 sqm of land had a now-lapsed DA for six townhouses and traded with net annual income of $67,189 plus GST. Also in the regional centre, a three-level office building at 394a Harbour Drive, leased to an ASX-listed essential services tenant, sold for $3,150,000, at 6.88%.
Several strata investments with health and medical leases traded on yields below 5%. The Liverpool strata offices of a mental health charity sold on a 4.91% yield, fetching $1.265 million on a two-year lease with a three-year option. A medical clinic Gosford sold for $710,000 with a new lease to December 2025 and a four-year option, and on a 4.76% yield, while a Cooks Hill dental surgery sold with a new six-year lease for $640,000 at 4.45%.
Also achieving a sub-5% result was a Subway investment with a renewed five-year lease and a five-year option. The Windsor outlet sold for $1,045,000, at 4.47%.
A pair of industrial investments sold under the hammer. A freehold industrial investment on 5,729 sqm of land in Somersby, leased to Spain-based Fluidra Group, sold for $3.6 million and on a yield of 6.29%, while a 3,466 sqm landholding in Batemans Bay on the South Coast with a 10-year lease fetched $3.5 million at 5.71%.
Also selling were:
- An organic grocery in ACT’s Braddon, with a new 10 + 10 year lease, for $2.34 million and at 5.60%
- A commercial cleaning tenant’s office in The Entrance, on the Central Coast, for $731,000 and at 5.98%
- The Parkes ANZ branch, with a lease plus options to 2025, for $1,085,000
