This article is from the Australian Property Journal archive
CHILDCARE centres and Queensland assets have played leading roles at the final Burgess Rawson portfolio auction of the year, which returned a tepid clearance rate of 35% on the day as investors continued their retreat.
The event at Melbourne’s Crown Casino was overseen by David Scholes of Auctionworks. Including the sale of a Caboolture Guppy’s childcare centre at 34 Jubilee Street prior to auction, seven of the 18 offerings sold for a 39% final clearance rate, after the previous day’s Sydney edition ultimately delivered 13 sales from 23 properties.
The Think Childcare centre at the 2,071 sqm corner site of 29 Morwell Street in Yanchep, north of Perth, posted the day’s biggest price tag, selling under the hammer for $4.43 million. It has a 20+10+10-year lease returning $280,000 per annum net, and is licensed for 96 places. Located in Australia’s third-fastest growth suburb, it is strategically positioned opposite a new $57 million high school and close to the Yanchep Central Shopping Centre.
A Smithfield G8 Education childcare centre north of Cairns delivered the second-largest sale price, of $2.6 million with a lease until June 2022 and licence for 75 places. The 694 sqm facility at is on 2,885 sqm corner site at 1-3 Ainslie Place and returns $180,300 per annum net plus GST.
Close behind was a 2,064 sqm Labrador development site on the Gold Coast, which fetched $2.58 million under the hammer. The 110-112 Frank Street site has five separately titled residences with approval for a nine-level, 84-apartment complex. It sold with a holding income of $78,260 per annum plus GST.
The two-level Star Pharmacy building at 290 Oxley Road in Brisbane’s Graceville sold for $1.8 million, with a lease until 2024 and options until 2044 and returning $106,762 per annum plus GST.
An entry-level medical investment at 2b/2 Flinders Parade at North Lakes, north of Brisbane, sold for $958,000 with a 10-year lease until 2023 and option until 2028 to Lime Therapy returning $71,652 per annum plus GST.
The Subway at 43 Reibey Street in Tasmania’s Ulverstone opened the day’s proceedings and sold under the hammer for $677,000, with a seven-year lease to 2022 plus option to 2029, returning $39,627 per annum.
It rounds out a year of events that spluttered to an end after an extended period of strong results and tight yields.
CBRE’s recent move into the investment portfolio auction arena, dubbed the “premium property portfolio auction” was tamed with just two sales from seven properties auctioned at the final instalment for the year, following strong clearance rates of 100% and then 70% from the first two editions. Taking into account transactions before and immediately after auction, four of eight ultimately sold at the most recent event.
The agency has nine portfolio auctions listed for 2018, with one to be held in each month from March, except for July.
Australian Property Journal