- 26 properties were sold at auction for a combined $100M
- 96% success rate, with $574M buyer pool available
- 25 bids were received per asset
As further evidence that investors are becoming more and more interested in commercial assets, an auction yesterday cleared 96% of properties put under the hammer.
After 20 properties were all sold in February, and a further 26 in March, Burgess Rawson’s 144th portfolio auction, held in Melbourne, saw 26 properties auctioned for a combined $100 million.
Total buying pool in the room, and online watching the action, was $574 million. For every property, there were on average more than six buyers interested. 156 buyers registered, with numbers doubling over the final 24 hours prior to the action.
An average 25 bids were received per asset, with The Story House Early Learning in Noble Park, Victoria attracting 75 bids in nine minutes.
Four properties sold prior:
- Malaysian Café Restaurant, Truganina, Vic for $1,100,000 with 5.24% yield
- Goodstart Early Learning, Manunda (Cairns) Qld, $2,510,000, 6.21%
- Shell/Viva Energy, Morwell, Vic, $2,890,000, 6.49%
- Mazda Warrnambool, Vic, $5,220,000, 8.24%
Other highlights included the Officeworks in Albury NSW, which sold for $10,950,000, achieving a record yield of 4.79%.
The result broke a previous best Officeworks result in Hervey Bay, Queensland that sold in November 2020 for $6.25 million on a yield of 5.59%.
The buyer and two underbidders were Melbourne-based investors. A trend seems to be emerging with private, Melbourne-based investors dominating the freestanding commercial investment market in Albury.
An apartment investment in Albury NSW attracted four registered bidders. Two Sydney based private bidders went head to head for the last $300,000 of the auction. In the end, the sale achieved 23% or $450,000 above reserve. The attraction was mainly around its unique residential lease structure.
Meanwhile, a Nubco power tools and hardware shop in Derwent Park, Tasmania was purchased by a Melbourne-based private investor. It set a record for a freestanding, industrial property in the state, 17% above the reserve.
In other deals, a Hungry Jacks in Port Kennedy, Western Australia, sold for 20% or $800,000 above the reserve. This was a record yield for a fast-food asset in Western Australia.
Five childcare centres sold for between $2.5M and $10.9M on yields ranging from 4.78% to 6.21%.
A Hong Kong investor who was bidding over the phone was determined to purchase a childcare investment. He was the underbidder on two centres before successfully purchasing One Early Education Group in Truganina, Victoria for $6 million achieving a yield of 4.91%.
