This article is from the Australian Property Journal archive
REGIONAL commercial properties have dominated Burgess Rawson’s Brisbane portfolio auction, which saw more than $21 million in sales for a total of $103 million across this week’s three eastern seaboard events.
Seven out of the 10 properties on off yesterday sold under the hammer, following a 91% clearance rate at Wednesday’s Melbourne event and 75% in Sydney on Tuesday.
The week’s clearance rate was 81.82% and childcare centres, fuel stations, retail, office and industrial properties sold on an average yield of 5.52%.
The highest value sale of the Queensland portfolio was a mixed-use retail and commercial property in Bongaree on Bribie Island, which sold for $7,200,000 on a yield of 5.76%. The fully leased retail centre includes NAB, The Coffee Club and a medical centre and is on 3,221 sqm adjoining a Woolworths shopping centre.
In the Cairns suburb of Woree, another multi-tenanted freehold investment on the Bruce Highway sold for $3,400,000 on a yield of 5.91%. Southside Veterinary Surgery anchors the asset with a brand new 10-year lease, while Anytime Fitness and Subway both have five-year leases.
Adam Thomas, managing director Queensland at Burgess Rawson said regional Queensland assets with established, national branded tenancies attracted strong interest.
“Confidence is still certainly high, and investors are actively looking to deploy surplus capital into proven sectors,” Thomas said.
“There’s a definite shift in buyer profile and we’re seeing sophisticated private investors chasing quality, and certainty, without the usual competition from larger institutions. Freehold assets like the retail centre in Bongaree, with national tenants including NAB, The Coffee Club, and an established medical centre, will continue to perform well in this market.”
In inner-city Brisbane, two prominent ground-floor retail tenancies at the McWhirters building in Fortitude Valley sold for $2,775,000 and $975,000. The sales of the Vinnies and O’Skulligans bar tenancies achieved yields of 5.75% and 6.05% respectively.
Also selling was a Puma service station in Noosa’s Peregian Beach for $4,200,000, on a yield of 6.21%. Chevron Corporation has a 17-year lease to 2033 with options to 2073 over the 1,016 sqm site.
Another regional retail centre, in Pialba in Hervey Bay, sold for $1,861,000 on a beefy 7.68% yield. The complex is fully occupied to tenants on hospitality, catering and cleaning suppliers GD Products, Queensland Computers, and Hervey Bay Cabinet Craft, as well as a residential dwelling on an annual lease.
