This article is from the Australian Property Journal archive
INVESTORS looking to fill up their Christmas stockings snapped up $52 million worth of commercial real estate at a portfolio auction yesterday.
The Burgess Rawson event, held in the Yallamundi Rooms of the Sydney Opera House, was the first of a pair to be held this week that mark the final instalment of the series for 2020. A second event will be held at the Crown Casino in Melbourne.
Of the 16 assets offered, 13 sold on the day for a clearance rate of just over 81%. A further two properties sold prior.
The headline result was the $10.8 million sale of a Dan Murphy’s big box liquor outlet in Gladesville, on the lower north shore. The property sold on a yield of about 3.8% with a 15 year lease to 2030 plus options to 2070, and occupies a high exposure 1,721 sqm corner property at 330 Victoria Rd.
An incredibly tight 2.9% yield was achieved for a showroom in Sydney’s second city Parramatta leased to automotive parts supplier GPC Asia Pacific, trading as AMX. On a 2,691 sqm site with a 75 sqm frontage, the property has a five year lease to July 2024 plus options to 2034.
Opening proceedings was the sale of two Viva Energy fuel stations operating as Shell and Coles Express. A western Sydney station on a 1,882 sqm corner site in Minto sold for $2.96 million, with a 10 year triple net lease to 2026 with seven further 10-year terms, on a yield of about 4.52%. In the lower Hunter Valley region, another corner property with the same lease structure fetched $2,552,000 on a yield of 6.44%.
The Quay shopping centre on the Fraser Coast attracted a winning bid of $9,250,000. The fully leased beachfront property has 21 tenancies and is perched on 8,915 sqm of land across three lots. The sale price represented a net yield of 7.6%.
Another neighbourhood shopping centre, in Wagga Wagga, sold for $5,050,000. Anchor IGA has a 7-year renewed supermarket lease that accounts for 64% of the net annual income of $445,208 plus GST. The centre is on a double fronted site of 8,378 sqm.
Five shops within a new inner western Sydney mixed use development sold for nearly $9.7 million combined, with leases to eateries, a café and a gallery. Among those, Shop 4/77-105 Victoria Rd in Drummoyne sold for $3,055,000. The 202 sqm has an 11 year lease to Ribs & Burgers that brings $156,706 each year.
A retail outlet of 1,650 sqm leased to Mosaic Brands in Bundaberg and home to fashion brand Rivers netted $2.7 million. Occupying 1,333 sqm of CBD land, the property has an extended four year lease to 2024 plus option to 2028 and brings net yearly rent of $225,094 plus GST.
On the Central Coast, a medical centre with a three year lease to November of 2022 sold for $1,890,000. The Wyoming property is on a 2,207 sqm of land and brings $94,064 plus GST in rent each year.
