This article is from the Australian Property Journal archive
AN ACT warehouse purpose-built for Viridian Glass has prior to auction for more than $11 million, headlining yesterday’s Burgess Rawson portfolio auction event.
A smaller affair than usual, only three properties at the Sydney event sold on the day, while three more were sold prior to auction for a 100% clearance rate.
The $11.015 million sale price for the Viridian facility in Hume was by far and away the biggest result of the six and represented a 5.32% yield. The 4,060 sqm warehouse was completed in 2016 and is on 12,707 sqm of land with B-Double access and at a gateway position just off the Monaro Highway.
Viridian, established in 1856 and Australia’s largest glass processor, has a 10-year lease over the property to 2017 plus options to 2042.
Selling under the hammer was a Coffs Harbour medical investment for $2,050,000 at 5.37%. Mid North Coast Cardiac Services has a brand-new five-year lease plus options to 2037 over the 209 sqm building, upgraded last year, and sitting on a 702 sqm site opposite the Ramsay Private Hospital.
“The industrial sector is highly regarded by private investors, property syndicates, and institutional investors and they are particularly focused on large land holdings, improved by functional buildings, in strategic commercial locations close to major arterials and complementary businesses,” said Burgess Rawson Sydney’s Rhys Parker.
“There is always strong competition on these types of properties when they come to market.”
The Hume sale was followed by the $1.15 million sale of a Nambucca Heads Commonwealth Bank branch at 6.18%. The major lender has a renewed two-year lease plus options to 2028.
Another warehouse facility, in Bathurst’s Robin Hill, was the third to sell on the day, fetching $1,405,000, at 6.78%. Fitness group F45 and ASX-listed Redflex occupy the 2,755 sqm site’s buildings on respective leases of 2026 and 2024.
Properties that sold prior to the auction also included an entry-level inner west Sydney medical investment in Drummoyne, for $575,000, at 5.04% and with a new five-year lease with an option to Novoscalp SMP Clinics Australia, as well as a Rabobank office in Forbes, for $1.25 million at 6.11%. The global tenant’s three-year lease runs to 2024 with options to 2033.
