This article is from the Australian Property Journal archive
COMMERCIAL property investors splashed out more than $130 million on showrooms, childcare centres, fuel stations and medical clinics this week at a series of portfolio auctions.
A three-day round of Burgess Rawson auctions finished with four assets selling under the hammer in Brisbane yesterday for $13.8 million, including a retail and office complex in Rockhampton leased to Knight Frank, Sonic Healthcare and Stokes Mining for $4.765 million on a beefy yield of 6.49%, while a Currumbin Waters showroom leased to Haymans electrical and data supplies sold on a 4.46% yield.
Showrooms proved to be order of the week. At the Melbourne auction on Wednesday, investors spent more than $21 million on National Tiles outlets in Melbourne’s Mitcham and Sunshine, and Grovedale in Geelong. Each of the showroom, office and warehouse properties were offered with brand new 12 year leases plus options to 2054 with 3% annual increases.
The Sunshine property netted the strongest result, selling on a sharp 3.73% yield with a sale price of $5.38 million. The Mitcham property sold for $8.27 million and on a sharp yield of 4%, while the Grovedale property – the birthplace of the brand – sold for $7,725,000 at 4.15%.
Also trading on a 3.73% yield was an Oakleigh South showroom leased to Tasman Butchers. The 1,270 sqm two-level main road building sold for $5.7 million with a 10-year lease to 2028 and options to 2043.
A Good Guys showroom on 6,699 sqm of land in Mildura sold for $4.2 million, on a sharp yield of 3.75% with a lease until 2027 with no further option. Also in Mildura, an Officeworks sold for $2.885 million at 4.73%. Officeworks has a renewed five-year lease plus options to 2042 over the 999 sqm building.
The tightest yield of the week was set at 3.17%, with an investor paying $1,465,000 for the Shepparton I-Med Radiology clinic. It has a five-year lease to December 2024 plus options to 2038.
The Melbourne event’s biggest price tag went to an Advance Childcare centre in Watsonia North. An investor paid $11.8 million for the 2,659 sqm corner site in eastern Melbourne, on a yield of 4.49% on the new 15-year lease plus options.
An entry-level childcare investment in Seaford sold on a 3.92% yield, for $2.325 million with a 10-year lease plus a 10-year option to Busy Bees. Another childcare centre, in Sunbury, sold for $6,575,000 on a yield 4.63%, where Bambini ELC has a 15-year lease plus 10-year options.
In the new Melbourne suburb of Fraser Rise, an IGA-anchored shopping centre sold for $6.81 million at 5.31%. The centre, which includes six shops, has a 7.9 year weighted average lease expiry and is on a 4,389 sqm island site.
A 3,860 sqm factory in South Albury, leased to Leed Steel and on 12,680 sqm of land sold for $5.25 million, on a yield of 6.1%.
