- Results of Cushman & Wakefield’s first online-only commercial auction
- 10 assets totalling $51.5M
- Demand for commercial assets remain high despite Covid restrictions
Following up from Cushman & Wakefield’s first online-only commercial auction (which was live-streamed on 28 July), the results reflect that tightening Covid restrictions in New South Wales will not stop high net worth investors from bidding for hotly contested properties.
As part of its National Sales Investment Portfolio for July, Cushman & Wakefield sold 10 assets totalling $51.5 million. Service station sales dominated the portfolio, totalling $20 million, alongside alongside childcare centres, large format retail and healthcare properties.
Cushman & Wakefield’s National Investment Sales team of Michael Collins, Tom Moreland, Aaron Dahl, Yosh Mendis, and Geoff Sinclair managed the national sales campaign across the portfolio, with more than 1,000 enquiries received and almost 200 requests for contracts.
“Interest in service stations, childcare and medical assets remains at an all-time high. With one in five enquiries resulting in a request for contract and an uplift in pre-auction offers, it shows that demand remains high despite the latest lockdowns,” said Michael Collins, Cushman & Wakefield’s Head of National Investment Sales.
“We have sold 10 of the 13 properties in our latest portfolio, or 77%, and are in advanced negotiations over two additional United service stations in expected to fetch in excess of $15 million.
“We continue to see yields sharpen across alternative commercial property asset classes driven by both demand and stock availability for well-located properties.”
Sales highlights
- An Ampol-anchored truck stop at Charlton, outside Toowoomba, sold for $11.2 million via an expressions of interest campaign at a yield of 5.75%.
- A United-tenanted service station in Coopers Plains, Queensland, also sold at auction for $7.9 million on a 5.6% yield.
- The Morningside G8 Childcare Centre in inner-city Brisbane exceeded expectations, selling for $7.2 million (preliminary price guide was upwards of $6.5 million).
- A centre in Arana Hills leased to Kids Club sold for $5.6 million on a 4.99% yield, also well in excess of reserves.
- An investor attracted to the boom in regional travel snapped up a large format retail property tenanted by BCF in Warrawong for $7.6 million at auction, on a yield of 5.30%.
- A medical centre in Norwest Business Park in New South Wales also sold for $2.43 million, the lowest yield among the July portfolio properties of 4.95%.
“We saw childcare centres continue to draw the eye of investors given their long term lease fundamentals and confidence in the tenants’ operating businesses,” added Tom Moreland, Cushman & Wakefield’s Associate Director.
“We are fielding regular calls from high net worth investors and funds looking to gain exposure to the childcare industry.”
Over in Sydney earlier this week, Burgess Rawson held an auction of 18 commercial assets, with 16 selling under the online hammer for a combined $42 million.
