This article is from the Australian Property Journal archive
A 5.5-hectare Bunnings-anchored large format retail centre site in Melbourne is headlining $350 million worth of commercial property brought to the market as part of Burgess Rawson’s next round of portfolio auctions and expressions of interest campaigns.
The Hoppers Crossing centre, in Melbourne’s south east, is being offered separately to the auction series, which will host its next events in Sydney, Melbourne and Brisbane on consecutive days in the first week of August.
At 21,670 sqm, the Bunnings warehouse is one of the network’s largest and is joined on the site by an Amart Furniture showroom that recently renewed its lease, combining for a seven-year weighted average lease expiry and total net annual income of more than $4.72 million, nearly three-quarters of which is accounted for by Bunnings.
The property also has 568 car parks and is in a big box retail precinct that also includes Harvey Norman, JB Hi-Fi, The Good Guys and Barbeques Galore.
Expressions of interest close 11th August.
Also on offer via expressions of interest closing the day prior is an Audi-anchored commercial centre in Sydney’s Sutherland, which brings annual net income of $947,000. ASX-listed Autosports Group has a renewed five-year lease and about half of the 2,569 sqm building’s income is derived from Audi.
Closing on 9th August is a campaign for a 43,600 sqm Port Macquarie highway service centre occupied by McDonald’s, KFC, BP, Guzman Y Gomez, Oliver’s and Chargefox. The Oxley Highway property, adjacent to the new 2,400-lot Sovereign Hills estate, brings in nearly $1.725 million in annual rent.
The auction sales events and expressions of interest campaigns will present a range of asset types spanning values from $600,000 to $100 million.
Assets tenanted by 7-Eleven, Chevron Fuel, IGA supermarkets and Australia Post will go under the hammer in Sydney, Melbourne and Brisbane. In all there are eight service stations and nine childcare centres on the block, medical centres, as well as a freehold 1,051 sqm government office building in Port Macquarie, while in Queensland, a series of Fortitude Valley retail assets at 247 Wickham Street will also be presented to investors.
Burgess Rawson’s head of agency (Sydney) Yosh Mendis said recent interest rate rises have not cooled investor appetite in essential services assets due to the quality of properties being brought to market and the ‘set and forget’ style of investment.
“Investors are still actively looking to deploy surplus capital into essential services assets and the contest for service stations, childcare centres, medical and government assets remains strong,” Mendis said.
“The longer-term lease profile for these asset types – which typically range from five years upwards to 15 years – together with the confidence that comes with top-tier national and international tenants, makes them a resilient, ‘set and forget’ investment.”
“Market confidence is certainly holding up,” he said. Burgess Rawson saw an 82.5% clearance rate from its June auctions, while a separate auction event in Melbourne by Fitzroys saw all 16 retail properties sold on auction day.
Burgess Rawson’s Sydney, Melbourne and Brisbane auction events will be held respectively on the 2nd, 3rd and 4th August.
