This article is from the Australian Property Journal archive
CHILDCARE centres and fuel stations have dominated this week’s Burgess Rawson portfolio auction events in Sydney and Melbourne, where investors have snapped up more than $78 million worth property.
At yesterday’s Melbourne event at Crown Casino, childcare centres in Victoria and Western Australia sold under the hammer for a combined $14.56 million after a Port Macquarie facility with a brand new 20-year lease plus options to Smartland Boutique Early Learning sold for $6.245 million, on a yield of 5.30%.
All of the centres sold on yields just above 5%. The G8 Education centre in Mount Clear sold with a 20-year lease to 2037 with options for $5.2 million, at 5.37%, while the Little Kids Club in Perth’s Coogee sold for $4.355 million at 5.14%, and the Sparrow Early Learning centre in Butler for $5,010,000 at 5.12%.
The biggest price tag in both Sydney and Melbourne went to regional fuel stations. A trophy Shell Viva Energy investment in Newcastle’s Beresfield sold for $6,925,000, on a yield of 5.54% with a 15-year lease to 2025 plus options, while at the Melbourne event a 4,000 sqm Bendigo site home to United Petroleum with a brand new 12-year lease and 30 years of options sold for $6.35 million sale, at 5.47% yield.
The only property to sell on a sub-4% yield at the two events was a Caltex service station in Lisarow. An investor paid $2.15 million on a 3.95% return for 2,770 sqm site. The service station was built in 2020 and has a 10-year ground lease plus options to 2050.
At the other end of the scale, a Shell site in the Macarthur region’s Wilton sold for $5 million on a beefy 9.07% yield. It has a 15-year lease to 2032 with options until 2052.
Properties at the Sydney event selling at under 5% yields included a café in Wahroonga (4.97%), an Australian Post warehouse in Tweed Heads South, for $4.175 million and at 4.93% with a lease to 2025 plus options, a St George bank branch in Fairfield (selling for $3.26 million on a 4.54% return), and an office building in Gosford on the Central Coast, leased to RSM until the end of 2024 with options, which sold for $5,060,000 at 4.95%.
Only two properties at the Melbourne event sold on sub-5% yields. A Ferguson Plarre Bakehouse with a new seven-year lease in the northern suburb of Epping fetched $1.26 million, at 4.29%, and an entry-level investment leased to longstanding eatery Noodle Mas in Wangaratta snuck in at 4.99%, selling for $686,000.
This week’s Burgess Rawson portfolio auctions conclude with an event in Brisbane today.
