This article is from the Australian Property Journal archive
MORE than $27 million worth of childcare centres sold at yesterday’s Burgess Rawson portfolio auction, as investors splashed out over $66 million in a Christmas shopping frenzy.
The event was the second of three to be held this week, sandwiched between Tuesday’s Sydney event and today’s event in Brisbane.
Headlining yesterday’s Melbourne auction was the $13.16 million sale of a childcare centre in Melbourne’s Brunswick West. Leased to Only About Children until 2035 plus options, the centre is on a 1,836 sqm landholding and traded on a yield of 4.09%.
That was followed by the Child’s Play Early Learning Centre in Torquay selling for $10.6 million at 4.88%. That has a 15-year lease plus options to 2062.
Another childcare centre, in Adelaide’s Huntfield Heights, sold for $4.29 million at 4.55%, with a new 15 year net lease plus options to Huntfield Heights Early Learning.
The sharpest yield of the day went to a two-level retail building in Malvern, which sold for $2,010,000 at 3.57% on the five-year lease to Pizza888.
The day opened with a Jax Tyres & Auto workshop in Warrnambool selling with a new seven year lease for $1,830,000 at 4.48%, while a Total Tools showroom in Mount Barker sold for $5.28 million at 4.50%.
A furniture showroom in Dandenong South sold for $4.8 million, on a 5.35% return on the renewed lease to Lavita Furniture.
Four shops in a Hampton Park retail complex and leased to eateries and a laundromat sold with sub-$1 million price tags and yields either side of 5%.
Two regional Victorian retail complexes were sold. An investor picked up a Shepparton asset for $4.5 million at 5.81%, while a fully leased Wodonga complex on 3,747 sqm of land sold for $5,665,000 at 7.10%.
In Tasmania, a cold storage facility and distribution centre leased to Superior Food Services – supplier to Hungry Jack’s, Subway, Domino’s and others – fetched $2,450,000 on a robust yield of 6.31%.
Also in the Apple Isle, a TAB outlet in Glenorchy sold for $640,000 at 5.22%. The entry-level investment has a renewed three-year lease to the gambling giant to 2024 plus an option.
Medical tenanted investments to sell included a Dorevitch Pathology site in West Albury, on a yield of 5.71%, and a chiropractor clinic in Tarneit that traded at 5.07%.
Round out the sales was a United service station in South Australia’s Pennington. The property has a brand new 12-year lease and netted $4.6 million, on a yield 4.79%.
