This article is from the Australian Property Journal archive
COMMERCIAL property investors have welcomed spring with a strong showing at the first Burgess Rawson portfolio auctions for the season, which achieved a strong clearance rate of 70%.
Seven of the ten properties on offer at Dolton House in Sydney’s Hyde Park sold under the hammer, while another sold prior to the event, overseen by David Scholes of Auctionworks.
A high-yielding whole office floor in the Cairns Central Plaza achieved the biggest price tag of the day, changing hands for $5.96 million. Currently utilised as a fertility clinic with two operating theatres, the 950 sqm property at 58-62 McLeod Street has 15 car spaces and sold with a two-year lease from February 2015 with options until 2035, returning $541,600 per annum plus GST ahead of a rent review in early 2019.
Another Queensland offering, a multi-tenanted building adjoining the Coles and Aldi anchored The Gap Village shopping centre, sold for $2.84 million. It returns $181,009 per annum plus GST from leases to Café Tara, dental practice Complete Smile, and Ray White Real Estate, and is on a 1,002 sqm site at 988 Waterworks Road.
The opening offering of the day was a NAB bank branch in Rockdale on a 503 sqm corner site and sold for $5.51 million, returning $238,534 per annum plus GST with a new five-year lease to the major lender, plus options to 2028. Zoned B2 Local Centre, 514-518 Princes Highway has a two-storey building of 537 sqm and three street frontages including rear lane access and four on-site parking space.
That was followed immediately by the sale of a Westpac branch in Kogarah for $3.5 million. The 313 sqm building on the 417 sqm site at 134-136 Railway Parade has a new five-year lease ending in 2022 with options until 2028, and brings in $160,425 per annum plus GST.
The landmark Lithgow ANZ branch on a 658 sqm corner site at 71 Main Street changed hands for $620,000. It has a two-storey building of 347 sqm, with a 13-year lease until 2021 and options to 2024 returning $42,805 per annum plus GST.
A child care centre in South Granville, leased to Little Learning School until 2028 with options to 2048, traded for $3.18 million. The 1,388 sqm site at 20 & 22 Ostend Street caters for 80 places and brings in $185,000 per annum plus GST.
Another medical centre asset was picked up by investor, with the 255 sqm top-floor of 35-45 Spring Street in Bondi Junction selling for $2.59 million. It is leased on a new 10-year deal with two five-year options, bringing $127,938 per annum plus GST, and has seven on-title parking spaces.
An industrial investment at 242 Nolan Road in Unanderra, leased to the New South Wales government’s Roads and Maritime Services was sold prior to auction. The 16,635 sqm site has a 1,548 sqm building and is leased until 2021 with options to 2031, and returns $237,747 per annum plus GST.
The series heads to Melbourne’s Crown Casino today, kicking off from 11am.
Australian Property Journal
