This article is from the Australian Property Journal archive
SYDNEY investors continued to show signs of caution as evidenced by Sydney’s second major commercial property portfolio auction for this year, which recorded a clearance rate of 56%.
The Burgess Rawson event through auctionworks had 19 listings, although 17 properties went under the hammer because three were sold prior.
Of the 16 properties auctioned, nine sold for in excess of $21 million.
This week’s auction result is the second month in a row the Burgess Rawson event has recorded a modest result. A month ago, the first portfolio sale of the year recorded a clearance rate of 50%.
In contrast to the pre-Christmas event, where a clearance rate of 76.7% was recorded from 43 auctions and in excess of $100 million worth of investments changed hands.
The most expensive investment sold yesterday was of a childcare centre at 10/4-8 Waine St Freshwater, which fetched $4.855 million. The 80-place facility comprises a 1,241 sqm building and was sold with a 10-year lease expiring 2023, returning a net rental of $296,129 p.a. plus GST. The building was constructed in circa 2013 and had approximately $1.85 million in depreciation available.
Another childcare centre at 6 Pierce Close Prairiewood sold under the hammer for $2.16 million. The 40 places facility was sold with a new 20-year lease to 2036 and is currently returning $110,000 p.a. plus GST with 3% annual rent increases.
A third childcare centre at 204 Mowbray Rd Chatswood sold for $2.41 million. The 696 sqm property has a license for 26 places and is leased until 2026, currently returning net income of $94,000 p.a. plus GST.
Two fast food restaurants were also snapped up. A McDonalds property a 1/150 Churchill St Childers Queensland sold for $2.25 million. The property was sold with a 10-year lease until 2023 and a net income of $114,000 p.a. plus GST.
A Hungry Jacks restaurant 49-53 Jondaryan Avenue Griffith fetched $3.40 million. The 240 sqm property occupies a 2,400 sqm site and is leased to Hungry Jacks until February 2023 on a rental of $172,096 p.a. plus GST.
A retail property leased to Bendigo Bank at 2/161 London Circuit Griffiths sold for $2.55 million. The bank renewed a lease until 2027 and is paying $171,910 p.a. plus GST.
In the mid north coast, a retail complex 38-40 Bowra St Nambubba Heads sold for $1.43 million. The 690 sqm building comprises eight shops and is fully leased to six tenants, returning $110,259 p.a. plus GST. It also includes 16 car parking spaces on a 915 sqm site.
A Caltex/Woolworths service station at 48 Railway St Blackwater in Queensland fetches $1.705 million. The 24-hour station is leased to Woolworths until 2022, returning $129,041 p.a. plus GST.
Finally, three adjacent shops at 2-4/129 King St Buderim, Queensland sold for $785,000. The property is leased to Liquoland until 2018 on a net rental of $54,233 p.a. plus GST.
Australian Property Journal
