This article is from the Australian Property Journal archive
INVESTORS have splashed out $33 million for commercial properties this week at Burgess Rawson’s latest portfolio auction events in Sydney and Melbourne.
Of the eight properties listed for yesterday’s Melbourne event, four sold under the hammer and three were snapped up ahead of the event, while seven out of 10 sold in Sydney on Tuesday.
Among those was a Penrith 7-Eleven, which achieved among the tightest yields of 3.67% on the $4.95 million sale price. On 5,784 sqm of western Sydney land, the 212-222 Andrews Rd property has a brand new 12 year lease with options to 2052.
A Leongatha Subway outlet also achieved a tight yield, selling for $908,000 at 4.48%, with a new seven year lease to the head office.
An ACT child care centre offered at the Melbourne event commanded the largest figure. The Wonderschool Early Learning Centre at 54 Kunapalari in Throsby sold for $7,800,000, on a yield of 5.82%. The national child care provider has a 20 year lease with two year options over the 2,450 sqm corner block.
Childcare centres in North Parramatta and on the Gold Coast also sold under the hammer, and another pair traded ahead of the events. Those included the Baby Bells Child Care centre in Melbourne’s Altona Meadows fetched $3,020,000 on a yield of 5.67%, and the Guppy’s Early Learning centre in Wulguru, Townsville was sold for $2.3 million, at 6.46%.
An investor bought the Montessori Academy Centre in at 31-33 Iron St in North Parramatta for $4,251,000, with a 10 year lease plus options to 2044, and the Tamborine Mountain Goodstart Early Learning Centre sold with a winning bid of $1,852,000. Its 20 year lease ends in 2026 and includes a five year option.
In Gladstone, a United Petroleum fuel station on 3,900 sqm of land sold for $5.68 million, representing a 5.53% yield on the return from a new 15 year net lease that has options to 2055.
Pets Domain showrooms sold in regional Queensland and Victoria locations were snapped up. The Maryborough property sold for $1,690,000 while the Sale building – which is also leased to Direct Appliance Rentals – fetched $1,888,000 on a yield of 6.91%.
A fully leased retail complex in Kawana on the Sunshine Coast sold to an investor for $3,940,000. The modern building of 1,691 sqm is tenanted by Nutrition Warehouse, Emjays Café, medical training facility Allens Training and gym Hiit, and traded on a yield of 6.76%.
In Wollongong, the Actrol warehouse site with future high rise development potential was picked up for $3,170,000 with a lease to November 2025 plus options to 2040, while in Warilla, the home of Illawarra Estate Agents and an oral surgeon sold for $1,275,000, with a 10 year lease.
