Commercial auctions
Commercial auctions continued their strong run. Image – Canva/Supplied
  • Burgess Rawson sold 49 properties (out of 54) for a combined value of $189M
  • Cushman & Wakefield also sold $44M of commercial properties (100% clearance)
  • Childcare centres, fast food, vets and healthcare were among the properties sold

The commercial auction market continues unabated, with strong results seen this week across several Australian capital cities, with the buying sight unseen, from interstate investors.

Burgess Rawson clears 49 properties for $189M

In just 72 hours, Burgess Rawson transacted 49 properties (out of 54 put under the hammer) for a combined value of $189 million.

The agency’s data showed that a buyer pool of 501 bidders was still looking to invest,  with $1.5 billion of potential capital.

Highlights included:

Melbourne

21 properties were (remotely) auctioned – 20 sold under the hammer for a combined $83 million.

  • Kingston Funerals, Cheltenham was sold for $3,830,000, on a yield of 3.78%. The auction was vigorous with 69 bids made before a Melbourne based, Chinese buyer secured the property.
  • in a fiercely contested auction, Coates Hire, Albert Park SA went for $16,100,000 achieving a yield of 3.59%. The successful purchaser was an Adelaide-based investor.
  • Sunbury Ford attracted a large number of bids (75), resulting in a Sydney-based buyer securing the property for $9,610,000 achieving a yield of 5.2%. The investor had purchased approximately $15 million in property this year, all sight unseen.  The underbidder was also Sydney-based.
Jax Tyres Auto
Jax Tyres and Auto. Image supplied

Brisbane

18 properties went under the hammer in a remote auction, with a 94% success rate (17 sold).

The first two properties of the day sold for sub 4% yields:

  • Jax Tyres at Michelton sold to a Melbourne-based investor, sight unseen, 29% above the reserve at $4,520,000 on a yield of 3.1% with 53 bids from 25 bidders.
  • KFC and Pizza Hut at Uraween were sold 35% above reserve for $7,960,000 on a yield of 3.98%, with 84 bids.
  • A duo of Greencross Vets, both located in Toowoomba, successfully sold separately (and unseen) for a combined $3,365,000 achieving yields of 4.49% and 5.14%. The Dennis St vet sold for 23% above reserve, with 25 bidders.
  • Caboolture Coowinda Childcare broke records achieving the lowest ever yield for a childcare asset in Queensland – $2,175,000, on a yield of 4.41%

Sydney

  • Turramurra Handprints sold for $1,850,000 – 30% over reserve – after 50 bids from 16 registered bidders.
  • Umina Beach Affinity Childcare sold for $2,050,000 or 38% over reserve after 50 bids from 22 registered bidders.

Cushman clears $43.8M at 100%

The market for childcare centres, fast food and healthcare properties shows no signs
of slowing, with investors snapping up almost $44 million worth of assets as part of Cushman & Wakefield’s September portfolio auction.

The portfolio assets sold collectively almost $4.6 million above reserves.

Headlining the auction was the Lilyfield Early Learning Centre, which was purchased for $14.35 million. The centre was sold on a record breaking 3.83% yield as investors vied for one of the first inner city metro Sydney centres to be brought to market in many years.

A childcare centre in Darra, 13km south-west of Brisbane, sold under the hammer for $7.75 million on a record low yield of 4.9%, while a G8 Education centre in Cessnock, New South Wales, sold prior to auction for $6 million on a 5.12% yield.

Taco Bell
Taco Bell in Tamworth. Image supplied.

Leading the fast-food offering was a Taco Bell situated in Tamworth’s core retail precinct. The property was sold to a high-net-worth investor for $4.7 million, equating to a 3.77% yield.

“The market for alternative assets is continuing its stellar run since the beginning of 2020 as investors’ hunt for yield remains insatiable.

“The fact that two properties sold prior to auction then 100% of the remaining assets traded on the day shows how strong demand really is. With the number and appetite of underbidders, we don’t see that trend slowing anytime soon.”

Michael Collins, Cushman & Wakefield

Given interest rates are expected to remain low for some time, the company expects the market to continue to perform well into next year and beyond.

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