This article is from the Australian Property Journal archive
INVESTORS in Brisbane opened their wallets yesterday, buying up all the commercial property investments offered at a portfolio auction event.
Burgess Rawson’s three-day three capital cities event drew a 100% clearance rate from five auctions.
Although it was headlined by a $6.1 million sale, the Brisbane theme was the same as the Melbourne event, with affordable and entry level investments being the flavour of the month.
The star of the Brisbane auction was a childcare investment 48-52 Redlynch Intake Road Redlynch, 8.2km from the Cairns CBD, which fetch $6.1 million on a 5.41% yield.
Sold with a 15-year lease to Sanctuary Early Learning until 2037, the property returns a net income of $330,000 p.a. + GST with fixed 3% increases.
It is set on a 3,042 sqm landholding and boasts 100 LDC.
Meanwhile automotive was the hot property in Queensland with three assets in Roma selling. An investment at 53 Soutter Street sold for $1.555 million on a 6.44% Yield. The property is leased to Toowoomba based RTS (Roma Trust Spares) and Pengelly Trucks and Trailers who recently expanded into the area. A property at 109 Raglan Streeet and occupied by Enzed sold for $1.845 million on a yield of 6.97%. The third investment, at 115 Raglan Street sold for $1.445 million on a 5.81% yield.
Finally an investor splashed $2.549 million on a car wash, at 6 Symonds Way Baringa, within a masterplanned community, on a 5.46%.
Burgess Rawson CEO Ingrid Filmer said the Queensland investments were highly contested due to the strong economic and population growth of the state.
“We’re seeing an influx of buyers who continue to abandon the residential investment market for the security of recession proof commercial assets which generate much higher returns and offer secure, long-term leases,” Filmer said.
The Brisbane event capped off a successful week for Burgess Rawson, with the Portfolio Auction 163 achieving $52 million in transactions with an average yield of 5.49%.
Filmer said the results show investors continue to seek out strong performing defensive assets that deliver solid future growth and upside.
“Over the past 18 months, we’ve seen yields for Red Rooster assets firm by 90 basis points to average 4.6%.
“Investors see the strength of the Red Rooster brand which has established a niche market attracting a strong cult following. Differentiating itself from other fast food operators, Red Rooster focusses on providing healthy products aimed at families and traditional Sunday roast dinners.”
Burgess Rawson partner, Matthew Wright said the property was an outstanding investment underpinned by a substantial 6,200 square metre site and its lease to Belgravia Group trading as Genesis Health and Fitness.
“The significant site size and being one of Genesis’s best performing businesses in the country attracted five registered bidders,” he said.
At the Sydney event, three childcare assets were sold with the Goodstart Early Learning Centre in Blue Haven selling for $3.18 million showing a tight return of 4.51%.
