- The portfolio comprises fuel and convenience retail, medical and retail, located across Queensland, NSW and Victoria
- Values range from $1.65 million to more than $10 million, with forecast yields averaging 5.66%
- Cushman & Wakefield team has already fielded 889 enquiries and issued 161 contracts
A portfolio of 12 hotly contested properties is being brought to market by Cushman & Wakefield’s next commercial auction, which will be live-streamed on 28 July.
Tightening Covid restrictions in New South Wales will not stop this auction from going ahead. This will be the first online-only auction from the commercial real estate firm in 2021. It will be live-streamed on Auction Works via their live auctions portal with a remote bidding room in Brisbane.
In a low-interest rate environment, commercial property is running red hot. Investor interest has been rapidly building for these alternative assets, which span a variety of sectors including fuel, childcare, convenience retail, and medical.
Expected sale values across the portfolio range from $1.65 million to more than $10 million, with forecast yields averaging 5.66%.
The assets are predominantly located in Queensland, New South Wales and Victoria.
Investor enquiry is running ahead of auctions held in 2021 and late 2020, according to Cushman & Wakefield’s National Investment Sales team.
To date, the team said they have fielded 889 enquiries across the 12 assets, expecting that level to surpass 1,000 by auction day.
In an even stronger sign of tangible interest, 161 requests for contracts have been received, equating to 18% of enquiries. Additionally, a number of pre-auction offers have resulted in a Tranzmile truck and trailer parts showroom in Kingaroy, Queensland, selling prior to auction for an undisclosed amount.
The headline auction is the Morningside G8 Childcare Centre located in inner-city Brisbane on a 15-year lease, with a price guide of upwards of $6.5 million. The asset provides a significant rental return of $356,614 p.a.
A United in Altona North, Melbourne is also expected to sell for around $8.5 million, plus United-leased investments in Terrey Hills, Sydney is expected to fetch $7 million and Coopers Plains in Brisbane, circa $7.9 million.
Among the four Queensland-based childcare properties attracting inquiry is an Arana Hills Kids Club, with a price guide of over $65 million equating to a yield of 5.5%.
Rounding out the portfolio is a Wollongong BCF and Dominos, with a price guide of $7 million, as well as a Bupa Dental Corporation in the inner-Sydney suburb of Glebe, with a price point of over $3.5 million. A Brisbane CBD Malt Traders bottle shop is also expected to be hotly contested.
“We have witnessed a boom in the private commercial investment market over the past nine months, and it’s gaining further momentum,” said Michael Collins, Cushman & Wakefield’s Head of National Investment Sales.
“Inquiry levels are outpacing previous campaigns, and we’re seeing an unusual amount of early offers as investors try to get ahead of feverish auctions to secure property.”
Michael Collins, Cushman & Wakefield’s Head of National Investment Sales
“Alternative commercial properties are trading on sharper yields as records continue to fall across asset types and locations. That’s being driven by yield hungry investors attracted to strong, long-term leasing covenants in sectors that continue to trade even in spite of lockdown orders.”