This article is from the Australian Property Journal archive
LARGE-format retail dominated yesterday’s Burgess Rawson portfolio auction event in Sydney, headlined by a South Nowra Salvos store, furniture showroom and motorcycle dealership site selling for $7.65 million.
Seven out of the 12 assets offered sold under the hammer, with a Total Tools showroom sold prior to the event for $4.58 million, on a 6.6% yield, with a new 11-year lease plus options.
The South Nowra property traded on a 6.0% yield, with renewed five-year leases to Pacific Furniture and Nowra Motorcycles. The Salvos have been had 13 years at the 10,277 sqm Princes Highway site, which has 3,758 sqm of floor space across three buildings, and parking for 73 vehicles.
A brand-new freestanding BCF showroom investment in Ulladulla achieved the tightest yield of the day, selling for $4,005,000 on a 4.72% return. ASX-listed Super Retail Group has an eight-year lease to 2031 plus options over the 700 sqm building on a 1,507 sqm landholding.
Next door to the BCF, another brand-new retail investment, with a 10-year lease to Oporto and seven-year lease to Zambrero, fetched $4,309,000 on a 5.37% yield.
A longstanding medical centre on the Central Coast sold for $3,059,000, on a 4.9% yield, after bidding opened at $2 million. The Bateau Bay Medical Centre has a new 10-year lease plus options to 2042 over the 1,265 sqm corner site.
A rare entry-level Sydney childcare centre investment with a new 10+10+10-year lease sold for $2.41 million on a 5.23% yield. Located in St Clair, 44 kilometres west of the CBD, the property has 100% occupancy with a waitlist in a fast-growing suburb.
Another Sydney childcare investment, also in Sydney’s west, sold for $2.52 million. The 40-place Prairewood property has a 20-year net lease to 2036 with two 10-year options and traded on a 5.37% yield.
Also selling was a Property and Development NSW building in Glen Innes, in the Northern Tablelands, for $855,000. The 1,218 sqm landholding has a renewed three-year lease plus option to 2027 and traded on a 7.42% return.
