This article is from the Australian Property Journal archive
INVESTORS have put more money into commercial property this week, as a portfolio auction in Sydney yesterday hit a clearance of 80% following Tuesday’s clean sweep of 18 7-Eleven fuel stations.
Three childcare centres changed hands at another Burgess Rawson event in Melbourne on Wednesday, including a Bayswater North property for $5.95 million with a new 20 year lease plus 10 year options to ASX-listed Think Childcare on a yield of about 6%.
A G8 Education site in the western growth location of Tarneit traded for $5 million, on a 6.1% yield. Also listed on the ASX, the tenant has a 10 year lease with options to 2054. On the outskirts of Bendigo, a brand new centre leased to Amiga Montessori with a long term lease running to 2039 plus options sold for $4.55 million, at 6.4%.
Also in Melbourne’s west, an Autobarn showroom in Wyndham sold for $2.422 million with a new 5 year lease plus options on a 5.74% yield, and Indian restaurant Kasba in Truganina sold for $1.288 million, with an annual net rental of $75,400 plus GST.
Billionaire Russell Withers netted a total of $156 million from his convenience store sell-off that was staged across auctions in October and earlier this week. Properties sold on Tuesday at an event held in both Sydney and then Melbourne’s Crown Casino sold for a combined $78 million and traded on a blended yield of 4.83%, following a first offering, which also recorded a 100% clearance rate.
In the fourth Burgess Rawson portfolio event held in the space of a few days, a showroom with dual leases to Supercheap Auto until 2026 and BWS to 2025 sold for $4.080 million, with a net annual rental of $246,680 plus GST.
The Sydney event also saw an IGA supermarket within The Hub Shopping Centre in Burpengary East sell for $2.3 million with a net rent of $176,785 per annum plus GST. IGA has a lease until 2029 plus options over the 867 sqm space at Lot 14, 115 Buckley Rd.
Strata shops at the base of Reflection Tower 2 in Coolangatta sold back to back. An ice creamery at shop 10 leased to Gelatissimo sold for $796,000 and brings $52,170 net each year plus GST, and shop 7 sold for $1.180 million with a lease health food café Raw Energy, returning $88,337 per annum plus GST net. Both are leased to 2022 with options.
Another strata offering, in Sydney’s inner west, sold under the hammer for $2.050 million. Leased to Spanish restaurant Alegrias for five years with an option, the 192 sqm corner property at 7/122 Terry St, Rozelle returns $125,400 per annum.
Offices of a long established nutritionist in Kogarah traded for $526,000 with a net yearly return of $27,023 plus GST from a three year lease with options.
In Kelso, a childcare centre leased to G8 Education sold for $2.010 million. The ASX-listed tenant pays annual rental of $126,682 plus GST on a triple net deal to 2026 with an option.
A neighbourhood village complex on the New South Wales south coast town of Broulee, with a grocery store, liquor store, café, service station, Ray White and Australia Post sold for $1.020 million.
