This article is from the Australian Property Journal archive
COMMERCIAL property investors snapped up another $27 million worth of assets at a portfolio auction yesterday, with medical centres and childcare centres – including a rare Tasmanian site – the headline act after fast food took its turn earlier in the week.
The result of the Burgess Rawson auction held at Melbourne’s Crown Casino takes this week’s haul to the brink of $100 million, after the previous day’s Sydney event saw $72 million spent on 14 out of the 18 properties on offer, for an 83% clearance rate. That was headlined by Griffith Group selling down a fistful of new fast food assets within its Bayview Centre in Warrawong, netting $31.75 million.
At the Melbourne event, eight out of 14 assets offered on the day sold. Another, the brand-new Berwick Village Medical Clinic in Melbourne, sold prior.
One of the most notable sales marked the first Tasmanian childcare centre deal in years. An investor forked out $4.915 million on a 5.43% yield for the Child’s Play Early Learning facility in Lindisfarne, on Hobart’s Eastern Shore. The 2,170 sqm corner site is licenced for 94 places.
The event opened with the $2.23 million sale of an Goodstart Early Learning centre in the Adelaide suburb of Linden Park, on a sharp 3.11% yield. It has a 20-year lease to 2040 with options and was billed as currently rented below market value.
Narrowly topping the sale prices was a medical centre in Ballarat’s Wendouree, occupied by long-term tenant Lake Imaging, wholly owned by ASX-listed Integral Diagnostics. It sold for $5.135 million, on a 5.50% net yield, with a new five-year lease plus an option. The centre is on a 1,752 sqm mixed use-zoned site.
Another Ballarat medical centre, leased to Mercy Health on a renewed five-year lease, sold under the hammer for $1.377 million at 5.72%, while a medical centre in the Western Australian port city of Bunbury sold for $1.911 million, on a 7.06% yield. IPN Medical Centre, part of ASX-listed Sonic Healthcare, has a renewed three-year lease with options.
Also in Western Australia, the Wanneroo Isuzu dealership in northern Perth’s Wangara netted $5.115 million, on a 7.15% yield. The 2,927 sqm corner freehold site has a 12-year lease to 2030 plus options to 2055.
A pair of retail assets also sold. A fully-leased retail complex in Adelaide’s Hackham, with a full-line Foodland-supermarket and eight-year weighted average lease expiry, traded for $4.675 million on a 7.04% yield, and a 732 sqm Liquorland in the Melbourne’s Hallam sold for $1.705 million, at 4.90%. ASX-listed Coles Group has a five-year lease to 2027 with options.
