- 369 bids were placed across 17 assets
- Portfolio sold for $13M above reserve
- Sale included nine petrol and retail convenience assets along with five childcare centres
17 commercial properties were sold under the hammer for $94.3 million at a recent Cushman & Wakefield National Investment Sales portfolio auction.
On offer were a variety of assets such as fuel and convenience retail sites, childcare centres, fast food, large format retail outlets across New South Wales and Queensland. A total of 369 bids were placed across the 17 assets at the auction which was held at Sydney’s Doltone House on 19 March with around 150 attendees.
Investors from auction rooms in Brisbane and Melbourne participated, alongside remote bidding activity from Hong Kong, Perth, Darwin and regional locations such as Ballarat. Ultimately, the portfolio sold for $13 million above the reserve.
Nine Woolworths Caltex petrol and retail convenience offerings collectively sold for $54.5 million, with one in Sydney’s Northern Beaches selling for $8.8 million.
Five childcare centres were also sold including one in Taigum, Brisbane which was acquired for $8.31 million by a Hong Kong-based investor along with 71 bids for a G8-leased childcare centre in regional New South Wales.
Other regional assets included a highway retail centre in Bomaderry, about 170km south of Sydney, with notable anchor tenants such as Domino’s and Red Rooster selling for over $8 million.
Michael Collins, Cushman & Wakefield’s National Director and Head of Investment Sales, said that demand continues to rise with his team selling over $220 million worth of commercial property since November 2020, with the latest auction in Sydney being the largest one held for some time.
“Private investor demand for commercial real estate assets continues to go from strength to strength, extending its run in late 2020. We sent out almost 400 contracts pre-auction and clearance rates across our last three auctions are running around 90%.”
“We are regularly seeing private investors bidding up these properties beyond reserve, and vendors looking for opportunities to lock in capital appreciation. It’s a win-win for both parties currently.”
Michael Collins, Cushman & Wakefield’s National Director
Tom Moreland, Associate Director for Cushman & Wakefield, is optimistic the demand for commercial property is here to stay.
“We expect this level of activity to remain for the foreseeable future, as investors seek passive commercial opportunities backed by defensive industries, particularly those that traded well through the pandemic.”
Tom Moreland, Associate Director Cushman & Wakefield
Cushman & Wakefield have their next auction scheduled for 29 April, which will feature 12 properties they expect to sell for approximately $62 million.