Firestone
This Bridgestone in Flagstone, QLD achieved a new record yesterday. Image supplied.
  • Lockdowns across Sydney and Melbourne did not deter investors yesterday as 23 of 28 sold
  • A combined sales value of $76.5M, according to Burgess Rawson's monthly portfolio auction
  • 738 bids were received from more than 300 bidders, with properties going for 12% above reserve price

Lockdowns across Sydney and Melbourne did not deter investors yesterday as 23 commercial properties sold (from 28), for a combined value of $76,516,000, according to Burgess Rawson‘s monthly portfolio auction.

This equated to an 82% success rate, with auctions held remotely with bidding available via phone and online, as well as in-person at interstate locations (including the Hilton Brisbane).

Overall, 738 bids were received from more than 300 bidders throughout the day, with properties going for an average of 12% above reserve price (or $7.9 million in total) and demand outstripping supply 12 to one.

The blended yield was 4.73%.

Five properties were sold prior:

  • a Japanese restaurant in Battery Point, Tasmania;
  • an auto repair in Wangara, Western Australia;
  • a Government asset in Mt Isa, Queensland;
  • an office asset in Mt Louisa, Townsville; and
  • an industrial asset in Glenorchy, Tasmania.

The $2,650,000 sale of a Bridgestone in Flagstone, Queensland (see main photo above) achieved a new record yield for Bridgestone investments in the sunshine state, achieving a yield of 3.77%. Three Bridgestone properties have sold over the past 18 months with the previous record at 4.25%.

An ALH hotel at Toowong in Queensland – The Royal Exchange Hotel – sold for $14,050,000 on a yield of 4.01%, achieving a record yield for ALH investments.

Royal Exchange Hotel
The Royal Exchange Hotel. Image supplied

Retail fuel continues to have wide appeal with three Shell/Viva Energy investments in South Australia and Tasmania, and two United assets in Victoria achieving successful results above the reserve.

Brisbane and Melbourne results

BR-Melb-Auctions-Aug21
Source: Burgess Rawson

Last week, Burgess Rawson held their commercial auction in Sydney, where 16 of the 18 (89%) assets sold for a combined $42 million.

In June, Melbourne sold 24 assets for $122.3 million, with Sydney clearing 16 of the 21 assets presented for a combined $33.7 million.

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