This article is from the Australian Property Journal archive
INVESTOR have given the Royal Agricultural Society of Tasmania an early Christmas present, with bidding pushing the ground lease of the Glenorchy Bunnings in Hobart past $14 million, more than $5 million above expectations, at the final Burgess Rawson property portfolio auction event for the year.
The result followed the $23 million sale of a Coles supermarket in south-western Victoria’s Hamilton.
While the assets fetched among the biggest price tags of the year for the series, only eight properties across a mixed bag of asset classes sold from 19 offerings at the event, held at Melbourne’s Crown Casino and overseen by David Scholes of Auctionworks.
Across the Bass Strait, the 16,900 sqm 2015-built Bunnings Warehouse next to the Royal Hobart Showgrounds changed hands for $14.03 million, achieving a remarkably tight yield of 3.13%.
The facility is on a 38,310 sqm corner site with potential for 2,000 sqm of building expansion and 380 parking spaces, and sold with a 25-year triple net lease until 2040 plus a 25-year option, currently returning $439,555 per annum net with 3% fixed increase.
On the other side of the Derwent River, Charter Hall recently completed its $27.25 million acquisition of the Bunnings warehouse in Mornington in a sale and leaseback deal.
The Hamilton Coles of 3,870 sqm – also built in 2015 – on an 11,584 sqm site at 104 Lonsdale Street, traded at a 5.2% yield. It has a 20-year lease until 2035 plus two ten-year options and returns just under $1.195 million per annum net, which will rise to nearly $1.238 million in December next year.
Zoned Commercial 1, it has 156 parking spaces and access to 100 integrated spaces.
It became the second Coles supermarket asset to trade in the state this week, after a first-time property investor from China paid almost $45 million at a 5.6% yield to acquire the 9,677 sqm Aurora Village Shopping Centre in Melbourne’s northern suburb Epping. The Coles and Aldi-anchored centre is on a 2.32-hectare site and was offered to the market by active vendor Coles Group.
The Burgess Rawson event also saw a Perth 7-Eleven site of 2,834 sqm at 194 Great Eastern Highway, on the corner of Grandstand Road in Ascot, sell for $7.2 million. The high exposure property has a 115-metre frontage and 22 on-site parking spaces and sold with a new 15-year service station lease and 10-year head office lease that brings $431,000 per annum.
Ballarat Central’s NAB branch attracted $6.2 million. The major lender has occupied the corner property since 2004 and two years ago re-fitted the 1,242 sqm building, which acts as its retail and business headquarters for western Victoria. It brings in $347,055 per annum on a renewed lease to 2023 plus options to 2032.
The day’s first offering, a La Porchetta restaurant in Shepparton, sold for $900,000 with a new 10-year lease plus options to 2038 with a return of $61,800 per annum plus GST. The 511 sqm building at 257 Wyndham Street is on a 470 sqm site and had recently undergone an intensive fit-out by the chain.
One investor lapped up the Petstock warehouse site in Melbourne’s Cranbourne with a winning bid of $2.6 million. Marketed with multi-level development potential, the 2,125 sqm site over two titles at 202 Sladen Street has an 835 sqm building and brings in $140,435 per annum from a new 12-year lease to 2030 plus options.
Closer to the city, in Oakleigh East, the 3 Bees Early Learning site was the only childcare centre to sell at the event. With a licence for 47 places and a net annual return of $122,707 plus GST and outgoings, the 875 sqm site at 22-24 Ferntree Gully Road sold for $2.05 million.
The last property to sell in 2018 for the series was the recently refurbished Crowe Horwath office building in Queensland’s Western Downs town of Chinchilla. The 1,217 sqm site at 26 Middle Street fetched $450,000, and has a new five-year lease plus options to 2029 with a net income of $47,000 per annum plus GST from the long-term tenant.
Australian Property Journal
