This article is from the Australian Property Journal archive
COMMERCIAL property investors stuffed their stockings with a Retravision showroom and kids’ play centre, warehouses, a service station and vet clinics and a portfolio auction in Melbourne yesterday.
The Burgess Rawson portfolio auction at Crown Casino saw $27 million worth of assets sell under the hammer for a clearance rate of 69% on the day, although including three that sold prior figure rises to 75%.
A Prahran Petstock showroom that was part of a $15 million portfolio selldown by Ascot Capital was withdrawn before the event. Multiple assets within that portfolio had been sold at the Burgess Rawson event in Sydney on Tuesday, including a Petstock-anchored complex in Coffs Harbour for $6.415 million.
The Melbourne events results were headlined by a Retravision showroom and Ape Escape children’s gym and play centre asset in northern Perth’s Joondalup, which sold for $8.3 million and on a 6.33% yield.
The property was offered with seven-year leases, with a 5.1-year weighted average lease expiry, with further five-year options. The 2,705 sqm building is located on an 8,071 sqm landholding fronting Joondalup Drive, within a large format retail precinct.
An Ampol service station in the south-east growth corridor suburb of Cranbourne netted $5.3 million, reflecting a 6.21% yield. Jasbe Petroleum has a new 12-year lease to October 2036 with options to 2056 over the 2,006 sqm corner site neighboured by Woolworths and Chemist Warehouse.
A few suburbs over in Dandenong, an industrial investment with a brand-new 5+5-year lease to national drainage services company Rangedale Drainage sold for $5.025 million, at 5.97%. The 1,270 sqm industrial facility is on a 3,648 sqm site with sought after industrial 1 zoning.
Another warehouse asset, this time in Port Adelaide, was knocked down for $3.2 million. The sale price reflected a 5.84% return from its new four-year lease plus options to Safety Xpress. The 1,206 sqm building is adjacent to Ampol and 750 metres from the Port.
Fur Life Vet clinics in regional Victoria and NSW sold at the event. The Echuca asset fetched $1.77 million, on a 5.65% yield, with a renewed 10-year with five-year options; while the Deniliquin asset sold for $1.275 million, with a renewed seven-year lease with five-year options, on a 6.21% return.
Fur Life Vet is a wholly owned subsidiary of ASX-listed Apiam Animal Health Limited.
Also selling were a modern café in Berwick for $615,000 at 5.55%, with a new 10-year lease plus options, and the adjoining barbershop, for $705,000. It has a new seven-year leas plus an option and sold on a 5.76% return.
The NAB bank branch building in Victoria’s Portland sold for $1.021 million, at 8.62%. The major lender has a renewed five-year lease with no further option.
Among the assets selling prior to the auction was the Red Cliffs IGA supermarket-anchored retail complex in the Sunraysia region. Ritchies has a 14-year lease to 2031 plus 10-year options, and the complex returns $486,834 per year plus GST.
