This article is from the Australian Property Journal archive
COMMERCIAL property investors doing some Christmas shopping having locked away a Riverina district police headquarters building for nearly $10 million as the last week of Burgess Rawson’s auction series for the year kicked off in Sydney.
Eleven out of the 23 listed properties sold under the hammer at yesterday’s event, and a further four were snapped up prior to auction.
The 24-hour police facility in Griffith – the headquarters for the Murrumbidgee police district – traded on a net yield of 6.01%, with a newly renewed 10-year government lease over the 2,860 sqm building, which has parking for 43 cars.
It was one of multiple assets to sell with government leases. In Glen Innes, a building occupied by both the NSW and federal governments sold for $3.6 million on a 6.89% return. The property has a 978 sqm building on a 1,934 sqm parcel.
A building of 1,485 sqm in Canberra’s Bruce sold for $8,500,000 on a healthy yield of 6.60%. Fully leased to the Australian government until 2025 with a five-year option, the property is on a 5,574 sqm block with mixed use zoning.
Another Canberra office asset, in the Woden Town Centre in Phillip, sold for $2,280,000. The suite is leased to a national development group and traded on a yield of 4.90%.
Childcare centres played their usual prominent role. A MindChamps facility in northern Sydney’s northern suburb of Frenchs Forest sold for $9,105,000 on a yield of 4.47%, with a lease to 2029 plus options to 2049, while a trophy asset in Turramurra sold on a sharp 3.59% yield. An investor paid $6,350,000 for the G8 Education facility, which has a 10-year lease plus options to 2036 to the ASX-listed company.
Industrial investments also changed hands. A Central Coast property leased to awning manufacturing business Kincumber Canvas sold for $1,651,000, at 5.48%, while a cold storage and freight facility in Braemar, in the Southern Highlands, fetched $3,900,000 at 6.67%. The facility is leased to Chill Freeze on an eight-year term plus options to 2060.
In western Sydney, a dual-tenanted investment leased to Wholesale Auto City and T&T Wardrobes across 3,047 sqm of corner land sold for $7,300,000 at 5.49%.
Also selling was a Best & Less outlet in Gunnedah, for $2,200,000 at 6.23% from the four-year lease plus option, and a Googong pub with a 30-year lease, trading as Gorman & Co, for $2,760,000 at 4.61%.
