This article is from the Australian Property Journal archive
SHOWROOMS in Victoria, Western Australia and Tasmania played a headline role in portfolio auction yesterday that saw investors snap up more than $100 million worth of commercial property.
Twenty-two of the 24 assets that went under the hammer at Melbourne’s Crown Casino yesterday at the Burgess Rawson event sold.
A First Choice Liquor showroom and the Bentley Tavern in southern Perth commanded a $10,060,000 price tag, selling on a tight yield of 4.06%. The corner site spans 8,735 sqm and is leased on a 10-year term with options.
In the eastern suburbs of Melbourne, the Stan the Man and Sienna Tile Gallery showroom in Blackburn’s Megamile sold for $5,065,000, on a yield of 4% and with a lease plus options to 2027, while a showroom occupied by The Good Guys in Tasmania’s Invermay sold for $11 million at 4.68%. The whitegoods and electronics retailer has a lease until 2028 with options through to 2048 over the 2,520 sqm building.
Not for the first time, a fast food outlet achieved the sharpest yield of the day. A KFC restaurant in Victoria’s Seymour was bought for $4,250,000 at 3.79%. Franchisee Retzos Group has a 10-year lease to the end of 2025 plus three decade-long options.
Not far behind was the day’s opening offering, a Reece Plumbing industrial facility in Colac that sold at 3.82%, for $790,000. The ASX-listed tenant has a five-year lease to June plus options to 2036.
Nearing the 4% mark was another Western Australian asset. The 2019-built medical facility home of North Metropolitan Health Services in Butler sold on a yield 4.04%, for $7,175,000, with a 15-year lease to the government tenant plus options.
Second time lucky for Sarah Sands
The Sarah Sands Hotel in Melbourne’s inner suburb of Brunswick found a buyer after being taken to the market for the second time in four months. It sold to an investor for $8,750,000, on a yield of 4.19%.
The 168-year-old began life as a tollgate when Sydney Road became the major route for travellers journeying to Sydney. Australian Venue Co. has a 10 year lease with multiple 10 year options over the former Bridie O’Reilly’s pub, having undertaken $2.7 million in refurbishments.
Another major result was a Chemist Warehouse, Dorovitch Pathology and medical clinic complex in Sunbury, north west of Melbourne, selling for $10,800,000 at 5.11%. Each of the three tenants have 10-year leases with options.
Childcare centres were again prominent. A Goodstart Early Learning centre in Mount Clear with a renewed 10-year lease sold for $4.060 million, at 4.91%, while a pair of Western Australian centres were knocked down to investors. A G8 Education facility in Southern River sold for $6.56 million at 4.76%, and a Buttercups Childcare & Early Learning centre sold for $6,050,000 at 5.04%.
Neighbouring car dealerships in Echuca leased to Servco were sold. The Toyota site selling for $6.1 million at 4.55%, and the Subaru site fetched $2,860,000 at 5.84%. Both have five year leases to the end of 2024 plus options.
In Melbourne’s Dandenong South, a 4,399 sqm United Petroleum fuel station site sold with a new 12-year lease plus options to 2064, for $4,090,000 on a 4.47% return.
