This article is from the Australian Property Journal archive
COMMERCIAL property investors snapped up another $37.3 million worth of childcare centres and petrol stations at a portfolio auction yesterday, which saw a clearance rate of 74%.
The Burgess Rawson auction event, held in Melbourne, saw 11 sales at a blended yield of 5.9%. It followed the previous day’s Sydney edition which also saw a 74% clearance rate, with $35.25 million of sales across 14 properties at 5.12%.
Burgess Rawson CEO Ingrid Filmer said the conservative budget announced on Tuesday night has underpinned confidence in the commercial property market.
“We had strong bidding at our auctions cementing the investor confidence in solid bricks and mortar assets, with our properties achieving yields that have not correlated with interest rate rises.
EG Group sold a second Ampol fuel station this week. Yesterday, the Epping property at the corner of O’Herns and Cotter Roads sold for $7.4 million, on a 6% yield. The asset provides a net annual income of $444,225 and is a significant 3,483 square metre landholding. On Tuesday, EG Group sold its Cameron Park property for $7.67 million, reflecting a yield of 5.87%.
Following the $10 million worth of childcare centres that sold in Sydney, a 1,390 sqm Forest Hill site in eastern Melbourne leased to Montessori Academy to 2036 with options sold for $6.9 million, at 5.08%.
Also selling were the Children’s House of Learning in St James in Perth for $1.18 million, on a yield of 4.66%, while in Melbourne’s Melton, the Story House Early Learning Centre traded for $1.75 million on a yield of 5.3%.
A highlight of the Melbourne event was the $1.035 million sale of a Goodyear Autocare in Leongatha, which sold on a yield of just 3.75%.
In the eastern Melbourne suburb of Blackburn, the Daiku Restaurant in the Pace development sold for $2.35 million, reflecting a yield of 5.45%.
Burgess Rawson takes the portfolio auction series to the Hilton Brisbane today.
