This article is from the Australian Property Journal archive
MORE than $50 million worth of commercial properties were sold under the hammer yesterday, with early bird investors snapping up at least $23 million prior to auction.
The Burgess Rawson portfolio had 33 properties listed for sale although seven were sold prior for $23.765 million.
A 2,804 sqm Coles supermarket at Lot 1 Jacaranda Drive at Tom Price, a mining town 1600km north-east of Perth, sold for an undisclosed price. The agents were Raoul Holderhead, Darren Beehag and Rob Selid. The property was sold with a 15-year lease plus options to 2065 on a rental income of $559,335 a year and the agents had anticipated it would sell on a circa yield of 10%.
Auctionsworks’ auctioneer David Scholes sold 16 properties under the hammer, whilst nine properties were passed in and one was withdrawn.
The first property on the block was a KFC fast food restaurant at 617 – 633 Fifteenth St Mildura in regional Victoria, which fetched $3.37 million on a yield of 5.79%. The property was with a brand new 10-year lease with three further 10-year options through to 2054 returning $200,000 a year plus GST. The 316 sqm building occupies a 3,002 sqm site. The Agents were Jamie Perlinger, Raoul Holderhead in conjunction with Lease Link Property Consultants’ Jim Mitropoulos.
Another fast food restaurant, leased to McDonalds, at 127 – 129 Bridge St Benalla sold for $3.38 million on a 5.97% yield. The 450 sqm building occupies a 2,276 sqm site and is on a 15-year lease to 2022, returning $202,018 p.a. The agents were Jamie Perlinger, Raoul Holderhead, Terry Board and Scott Meighan.
A couple of childcare centres were also snapped up. Lot 2, 265 Robinsons Rd Ravenhall, a 613 sqm facility licensed for 97 places and leased to G8 Education until 2021 returning $150,452 p.a. sold for $2.30 million on a yield of 6.54%. The agents were Adam Thomas and Shaun Venables.
55 Mark Rd Little Mountain in Queensland’s Sunshine Coast, a 1,631 sqm facility leased to Goodstart Early Learning until 2023 returning $84,438 a year, sold for $1.355 million on a yield of 6.23%. The agents were Adam Thomas and Michael Collins.
A childcare centre at 24 Michigan Drive Oxenford on the Gold Coast sold prior to auction for $1.46 million. The 65 license facility is leased to Goodstart Early Learning to 2020 on a rental income of $102,140 a year.
A property leased to Cash Converters at 2 – 4 Dickson Rd Morayfield in Brisbane’s north sold for $3 million on a yield of 6.75%. The 2,500 sqm site was sold with a new 10-year lease with two further five-year options to 2034, returning $202,650 p.a. The agents were Adam Thomas and Michael Collins.
Two retail centres leased to Officeworks were up for grabs. A store at 253 Bourbong St Bundaberg, QLD fetch $2.885 million on a yield of 7.07%. The 1,072 sqm building plus 23 car parking spaces occupies a 2,033 sqm and the lease was recently renewed by Wesfarmers to July 2022, paying $203,978 a year. The agents were Graeme Watson, Shaun Venables and Michael Collins.
The second Officeworks was at 134 Deakin Avenue Mildura, Victoria, which sold for $2.276 million on a yield of 7.08%. The 999 sqm building sits on a 1,389 sqm site and is leased until May 2018 plus options. The current rental income is $193,193 a year. Agents were Robert Stanley-Turner and Raoul Holderhead.
Meanwhile five entry-level Liquorland investments in QLD were on offer to quench investors’ thirst. The agents for all four transactions were Pat Kelly, Jamie Perlinger in conjunction with Ray White’s Joel Fisher and Christian Tsalikis.
The Liquorland stores were sold with identical lease term of 15 years to 2021 and four properties offered the same rental income. A 159 sqm shop with eight car parking spaces on a 514 sqm site at 86 Bundock St Belgian Gardens, Townsville sold for $715,000 on a yield of 6.89% based on a rental income of $49,272 p.a.
At 69 Railway Avenue Railway Estate Townsville, a 174 sqm shop on a 506 sqm site sold for $725,000 on a yield of 6.79%.
At 1/86 Woodward St Edge Hill Cairns, a 113 sqm shop within The Avenue retail complex, sold for $707,000 on a yield of 6.95%.
At 2 Poolwood Rd Kewarra Beach, Cairns, a 118 sqm property sold for $700,000.
The final store, comprising 121 sqm over two lots at 77 Loridan Drive Brinsmead, Cairns sold $471,000 on a yield of 6.97%. The rental income was $32,845.
There were two sales at Victoria’s South Gippsland regional town of Leongatha,
An office building at 12 Peart St Leongatha sold for $1.2 million on a yield of 8.33%. The 500 sqm office occupies a 1,197 sqm site and is currently returning $100,000 p.a. The agents were Raoul Holderhead and Jamie Perlinger in conjunction with Andrew Newton‘s Peter Dwyer and Alan Steenholdt.
Meanwhile a two-level pub occupying a 1,370 sqm site, with a brand new 10-year lease plus options to 2044 at 2 – 8 Bair St Leongatha sold for $2.401 million on a yield of 9.12% based on a rental income of $220,000 p.a. The agents were Jamie Perlinger, Raoul Holderhead, Terry Board and Scott Meighan.
Closer to the city, in Melbourne’s northern suburbs, an industrial property at 9 – 11 Hocking St Coburg North sold for $1.65 million on a yield of 7.87%. the 1,148 building includes a two-level office, set on a 1,337 sqm site. It was sold with a new 10-year lease plus options to 2039 on a rental income of $130,006 p.a. The agents were Adam Thomas, Raoul Holderhead in conjunction with Domain Commercial’s Dean Fornaro.
Finally, shop 6/210 Ballan Rd at Wyndham Vale in Melbourne’s west, sold prior to auction for $585,000. The 103 sqm building is leased to a Chinese restaurant, which recently renewed a seven year lease with options to December 2028, paying $44,741 a year. The agents were Ben Appel, Jamie Perlinger in conjunction with Lease Link Property Consultants’ Jim Mitropoulos.
Australian Property Journal
