- Evidence from commercial property auctions shows an increase in interstate activity
- Low stock levels and surplus of undeployed capital are broadening the search
- $100M of (28) commercial properties will be up for auction on 12 May
With an excess of undeployed capital and available stock at low levels, commercial investors are looking outside their own borders to snap up deals.
Evidence from this year’s monthly commercial asset auctions from Burgess Rawson attests to this trend.
“The confidence in the market right now is remarkable.”
“Investors are highly motivated. At our last auction, we assembled a buyer pool of more than $630 million between registered bidders in the room, online and on the phone, so we know there is a large number of unsatisfied underbidders still looking to invest.”
Billy Holderhead, Burgess Rawson Director
Investors are increasingly prepared to make cross border transactions, said Mr Holderhead.
“At our last auction, three Tasmanian investments leased to hardware retailer Nubco were purchased separately by Melbourne investors.”
Up in Queensland, in a market traditional for Sydney and Melbourne buyers, local investors have also been busy.
“A large number of Queensland investors [are] more active, not only to invest in their own state, but also across borders… the Queensland market is really heating up,” he said.
Queensland getting in on the act
This sentiment is demonstrated by recent sales secured by Queensland investors, including two investments in Berrinba, Queensland purchased by south eastern Queensland investors, and two ALH Group hotel investments – one in Victoria and one in Queensland – secured by Brisbane investors.
In Burgess Rawson’s fourth monthly auction of the year to date, set for 12 May at the Crown Casino, 28 properties will be put under the hammer, collectively worth more than $100 million.
The assets are drawn from essential service and convenience sectors such as childcare, fast food, retail fuel, government, liquor, medical and banking.
Highlight properties include a Hungry Jack’s restaurant in Port Kennedy, South Perth; a long-standing Officeworks in Albury, New South Wales; an Australia Post in Bendigo, Victoria; O’Malley’s ALH Group pub in Mooloolaba, Queensland; and a Viva Energy fuel station in Morwell, Victoria.
Childcare investments are also well represented once again with five early learning centres across Victoria, Queensland and Western Australia going under the hammer.