This article is from the Australian Property Journal archive
PHARMACIES, a service station and a TAB were among properties sold at yesterday’s Burgess Rawson portfolio event in Sydney.
The pre-Easter event saw six out of eight properties sell under the hammer, while a Salvos store and a medical clinic in Sydney sold ahead of the event held at the Opera House’s Yallamundi Rooms.
A Newcastle service station commanded the biggest price tag of the day, selling for almost $5 million. The Mayfield site spans 2,381 sqm has a renewed 10 year lease to United, with options to 2045, with an annual net return $291,504 plus GST.
Regional pharmacies sold for similar prices. On the New South Wales south coast, a Chemist Warehouse in Nowra fetched $2.755 million with a three year lease plus option. The national chain pays yearly rent of $151,500 plus GST net on the 502 sqm building.
An investor forked out $2.655 million for a Star Discount Chemist in Cardiff, Lake Macquarie. Part of the Star Pharmacy Group, the chemist has committed to a brand new 10 year lease plus options to 2051 for the 297 sqm property. It traded on a yield of 4.43%.
“With the trend of people moving away from central city locations into regional areas, we have noticed a shift in the market with regional assets becoming increasingly more sought after,” Burgess Rawson associate director, Kieran Bourke said.
“The sale of the Cardiff Pharmacy is a testament to this growth corridor regional NSW is experiencing.”
In the harbourside suburb of Neutral Bay, an investor took a $3.4 million punt on the TAB premises at 128 Military Road. The 175 sqm property is part of the Bay Central complex and is leased to the betting company on a 10 year deal until 2026 plus options to 2036, and sold on a 4.69% yield.
“We received well over 100 enquiries and 18 contract requests – the A-grade ASX listed tenant, location and favourable lease terms were all major draw cards for the interest received in this property.”
Also selling was a four storey office building with a 1,074 sqm floor area in the southern suburb of Rockdale, for $3.12 million. Multiple long term tenants, including Willow Realty, that pay a combined $149,681 each year in rent. The three level building next door also went under the hammer but didn’t sell.
A Liquorland investment in Cairns changed hands for $1,290,000. The renewed five year lease to the Coles Group tenant brings $62,340 each year plus GST.
Today’s event in Melbourne will see a sizable 26 properties offered. Already sold are a Sparrow Early Learning centre in Perth’s Quinn’s Rocks, and a Townsville car wash facility.
