This article is from the Australian Property Journal archive
BURGESS Rawson’s has kicked off the start of the 2011 commercial property auction season with three sales in Melbourne totalling $8.54 million.
Some 180 people attended the agency’s auction at Crown Casino.
The biggest result was the sale of a Priceline Pharmacy in Balwyn, east of the Melbourne CBD, for $4,110,000.
Director Raoul Holderhead said there were 61 bidders for the 402 sqm property. Fierce competition drove the sale price above the vendor’s reserve which was around $3.75 million.
The sale price reflects a yield of 4.42%. The property at 427 Whitehorse Road Balwyn is currently leased to Priceline Pharmacy for 10 years plus options and returning $188,076 p.a. with 3.5% annual rental increases.
Holderhead said the property is in a prime location and the retail strip is tightly held.
The second major sale was the Airmaster headquarters in Scoresby in Melbourne’s south east. Holderhead said the property at 2/52 Rocco Drive was sold prior to auction for $3,665,000 on a yield of 8.75%.
The property comprises a 2,500 sqm building on a 5,120 sqm site with 80 car parks. It is currently returning rent of $320,850 p.a. and is leased to Airmaster Australia on a 6 + 5 + 5 year lease with 3.5% annual increases.
And in Ringwood, a property at 3/76-82 Maroondah Hwy leased to Jetts Fitness was sold for $765,000 on a yield of 8%. The brand new fitout shop comprises 240 sqm and is leased to Jetts Fitness for seven years returning $61,250 p.a. Holderhead said there were six bidders.
In rural Victorian town of Shepparton, Burgess Rawson sold a fully leased Foodworks supermarket and Australia Post retail investment for $800,000. The property at 18-28 Colliver Rd comprises 1,108 sqm and the rent is $66,109 p.a.
Holderhead said all the properties were sold and purchased by private investors.
He added that whilst it is early in the year to gauge how the commercial property market was performing, he said four out of five sales was an outstanding result.
Only one property was passed in at $1,350,000 which was a two level freestanding office building at 12 Gregory St Mackay in Queensland.
“This is only the start of the commercial auction for this year so we will have to wait and see. But we are seeing vendors starting to bend,” Holderhead concluded.
Australian Property Journal
