This article is from the Australian Property Journal archive
INVESTOR demand was rather tepid at the Burgess Rawson portfolio auctions in Melbourne yesterday, with only a small smattering of sites selling under the hammer.
A total of just seven from 16 sold, following the previous day’s portfolio offerings in Sydney that also had less than half of the properties change hands at auction.
Proceedings in Melbourne, overseen by David Scholes of Auctionworks at Crown Casino, saw only four three properties sell for more than $1 million, three of which were located outside of Victoria.
The Woolworths supermarket site at 10-20 Geum Street in Melbourne’s northern suburb of Hadfield sold for $8.75 million, but at $1 million less than what vendor developer Bill Zahra had purchased it for just a year earlier, on a 4% yield. The 5,569sqm property has a 162sqm frontage and is leased until early 2019, with options until 2039, and transacted at a 4.7% yield this time around.
Outside of that, the tightest yield achieved on the day came from the opening offering. The Wyndham Vale Domino’s site at Shop 1/210 Ballan Road in Melbourne’s outer south-west sold for $990,000 on a 5.79% yield.
Whereas childcare centres headlined Tuesday’s proceedings, only two sold under the hammer at Crown. The Mount Barker G8 Education site at 46 Wellington Road in South Australia provided the day’s biggest price tag of the sector at $3.205 million, and a 6.4% yield. The 3,345sqm site sold with a 15-year lease and further options until 2044.
The Petit Early Learning centre in Queensland’s Port Douglas was next in terms of sale price, selling for $2.7 million on a 6.97% yield. The 507 Davidson Street site sold with a 15-year lease until 2029 and further options until 2039.
Neither came close to matching Sydney’s tighter yields, topped by the G8 Education childcare centre in Kellyville Ridge at 3.97%, and another G8 Education centre, operating as Kindy Patch in Condell Park, at 4.22%.
The 2,537sqm site at 115-117 Steele Street & William Street in Tasmania’s Devonport was the only other property to transact for more than $1 million at Crown. It sold $1.012 million, at a 6.35% yield and with a 15-year lease to 2030 plus options until 2045 to ASX-listed National Veterinary Care Ltd.
A Mooroopna bottle shop at 2 Morrell Street, leased to Australian Liquor Marketers on a 15-year lease until 2022 with options until 2032 and operating as The Bottle-O, sold for $670,000 on a 6.30% yield.
The two-level Tosca Browns restaurant building at 211 Gray Street in Hamilton sold for $430,000, on a 7.08% yield.
Things were looking particularly lean when the Mildura Officeworks passed in for $2.295 million, meaning only three of the nine offerings to that point had sold.
However, a run of four consecutive sales lifted the day’s returns. A 7-Eleven at 1696 Albany Highway in Western Australia’s Maddington and a Sparrow Early Learning childcare centre in Melbourne’s Keilor Downs selling prior to auction.
Australian Property Journal
