- Sydney saw a 91% clearance rate and $31.4 million worth of commercial property sold
- Biggest NSW sale went to a LJ Hooker Atlas site, $4.28 million on a 5.69% yield
- Meanwhile, a Melbourne shopping strip asset went for $1.68 million on 3.1% yield
After some successful commercial auctions in Melbourne, Burgess Rawson hosted its third Sydney auction of the year at the Opera House last week, securing a 91% clearance rate and selling $31.4 million worth of commercial property.
Eleven of the twelve properties were sold, with two of the properties snapped up before the auction.
The biggest NSW sale went to a LJ Hooker Atlas site located in the Neutral Bay region, selling for $4.28 million on a 5.69% yield.
Another big-ticket item was the sale of the Commonwealth Bank in Batemans Bay. Situated in Eurobodalla Shire’s commercial hub, one of Batemans Bay’s best main street positions and was snapped up by an investor for $2.3 million on a low 5.09% yield.
“Investor interest in the South Coast region is growing exponentially, and with the CBA occupying a prime piece of real estate in the centre of town, we anticipated a healthy sale.”
Michael Gilbert, Burgess Rawson Sales Director
“The sale of this asset also reflects the confidence investors have in banks. Not too long ago there were concerns around the stability of banks as an investment opportunity, however, those concerns have dissipated, and the attractiveness of these assets are at an all-time high.”
Sydney Auction Results, 11 May 2021
Melbourne strip investment sold
Meanwhile, back in Melbourne, spirited bidding from nine parties has seen a secure Melbourne shopping strip investment in Centre Road, Bentleigh, leased to ASX-listed Domino’s, deliver a supreme auction result.
Fitzroys agents Mark Talbot and Tom Fisher sold 488 Centre Road Bentleigh (see main photo above) for $1.68 million under the hammer, on behalf of vendors that had owned the property for 36 years.
A metropolitan Melbourne-based buyer purchased the property at a sharp 3.1% net yield.
Domino’s, which has 848 stores throughout Australia and New Zealand, has a long 5+5-year lease over the property, which comprises a 141sqm double-storey building on a 200sqm property with on-site parking and rear access.
Mr Talbot said high volumes of enquiry were received for the property from local and interstate investors based on its strong lease covenant, with a long-term agreement with an ASX-listed tenant, as well as its freehold title and attractive price point.
“The national interest, fiercely contested auction and strong result reflect the confidence shown by the market in the resilience of Melbourne’s shopping strips,” said Mr Talbot.
“Well-located bricks and mortar assets with quality leases are even more highly sought after during the COVID period, as well as in the ultra-low interest rate environment.
“Investors from around the country continue to identify well-located Melbourne retail and commercial property with strong tenancy profiles and long-term leases as ideal assets.”