This article is from the Australian Property Journal archive
COMMERCIAL property investors snapped up all 14 assets on offer at the Burgess Rawson portfolio auction event in Sydney yesterday, with fast food outlets, childcare centres and service stations headlining the circa $54 million in sales.
Fourteen properties were originally listed for the day, with a brand-new childcare centre in Dubbo selling prior to the event for more than $5.1 million.
A McDonald’s in the Hunter Region’s North Rothbury kicked off the day with a $4.37 million sale, on a razor sharp 3.97% yield. Bidding started at $3.2 million for the brand-new property, which has a 20-year ground lease to December 2043 with options to 2073.
Hot on its heels was the $3.205 million sale of a KFC in Victoria’s Wonthaggi, on a tight 3.92% yield. The 2,330 sqm corner island site has a renewed 10+10+10-year ground lease.
Next up was an inner Adelaide Hungry Jack’s that was sold for $5.21 million, on a 4.34%. The 1,411 sqm Westbourne Park corner site has a brand-new 12-year lease to Hungry Jack’s.
Another South Australian asset followed – a Mount Gambier Red Rooster that netted $1.85 million, on a 4.71% yield from the 10-year head office lease.
Rounding out the opening run of fast food assets was the Carl’s Jr. in Caboolture, in Moreton Bay, which sold for $5.105 million at 5.14%. Carl’s Jr. has a new 15-year lease to 2039 with five-year options.
The biggest price paid for the day was $7.985 million for another Caboolture asset – the neighbouring brand-new 2,687 sqm Ampol service station and Oporto restaurant site, trading on a 6.07% yield. The property has general residential – urban neighbourhood zoning that may allow for up to seven levels, but for now the property has a 12-year lease to EG Group, with five further five-year options.
A brand-new childcare centre in Lake Macquarie’s Cardiff also topped the $7 million mark. An investor paid $7,050,000 on a 6.03% yield for the Bluebird Early Education site of 3,275 sqm, which has a new 15-year lease plus options to 2069.
Also selling on the day was an entry-level Pizza Hut investment in western Sydney’s St Marys, for $1,070,000 on a 5.75% yield. Pizza Hut, which has been at the property for 20 years, has a new five-year lease with options to 2038.
