This article is from the Australian Property Journal archive
COMMERCIAL property investors have snapped up more than $10 million worth of childcare centres – including one in a blue-ribbon Sydney suburb on a sub-3% yield – as well as brand-new convenience retail investment and a portfolio of regional NRMA offices at a portfolio auction yesterday.
The Burgess Rawson event, held in Sydney, saw 14 properties sell for a total of $35 million, reflecting a success rate of 74%.
The day was headlined by the its opening offering, the Goodstart Early Learning centre in Mosman, that sold for $4.41 million on an eye-watering 2.75% yield. Bidding started at $3.5 million for the investment, which is on 697 sqm on Cabramatta Road, and has a 20-year triple-net lease to Goodstart Early Learning to 2041 with options.
Burgess Rawson partner, Yosh Mendis said the property ticked all the boxes with a secure long term lease to a blue chip tenant, favourable triple net lease structure and a significant premium Sydney landholding.
“Despite interest rates, investors remain very active to secure strategically located ‘bricks and mortar’ assets secured by strong tenant covenants, particularly high net worth individuals and foreign investors,” he said.
A rare brand-new vacant childcare centre in East Hills sold for $3.977 million with a licence for 40 places, and marketed with a potential income of $176,000 plus GST per year, showing a circa 4.4% yield.
Another childcare centre, in Wagga Wagga’s Bourkelands, sold for $2,050,000 on a net yield of 5.48%. It has a 10-year lease to 2026 plus options to a multi-centre operator.
The biggest sale price of the day was the $7.67 million paid for a new Ampol service station, representing a 5.87% yield. The Cameron Park, Lake Macquarie site spans 3,874 sqm next to a McDonald’s and KFC and has a 15-year lease to EG Group with options through to 2068.
A BP service station in Albury’s Lavington sold for $2,040,000, on a very high 8.18% yield. The 1,360 sqm site has a 10-year lease to 2031 plus options.
Nationally tenanted Sydney F & B investments remained popular with the Kickin’Inn at Crows Nest selling for $4.4 million on a yield of 5.01%.
Four regional NSW NRMA offices were sold under the hammer for a combined $4.656 million. Each had a brand-new five-year lease and were located in Nowra, which sold on a yield of 6.91%, Picton (6.35%), Bega, which also included a café (7.35%) and Goulburn, which also included a formalwear hire business and first floor apartment (7.79%).
