Big yield for Bendigo Bunnings
A Bunnings Warehouse in regional Victoria and a string of childcare centres were among more than $100 million worth of properties that changed hands at the latest Burgess Rawson investment auctions.
The Bunnings-leased property at Bendigo sold for $14.46 million on a 5.97% yield at Wednesday’s auction in Melbourne – uncharacteristically high for one of the hardware chain’s outlets – as investors also made a beeline for childcare and petrol station assets.
Other Bunnings outlets have been selling on yields as low as 4%, but with only five years left to run on Wesfarmers’ lease of the High St property, it shaped as a steal for an investor prepared to take the gamble on a potential lease extension.
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The hottest property on offer in Melbourne, however, was unquestionably a Woolworths Caltex at Laverton in the city’s south-west, which sold for $2.755 million on a 3.9% yield.
The Woolworths Caltex at Laverton sold on a sub-4% yield.
Other petrol stations also sold well, including a trio of United-branded stations at Bellerive in Tasmania and Hastings and Warragul in Victoria, which went for between $3.83 million and $5.25 million.
And investor appetite for childcare centres shows no sign of abating, with all five centres on offer at Wednesday’s auction at Crown Casino having little trouble finding new owners.
One of the centres, at Springvale in Melbourne’s south-east, sold for $3.62 million on a 4.21% yield, while another at Wyndham Vale reached $6.93 million.
Childcare centres, including one in Springvale, continue to be keenly sought-after.
Burgess Rawson’s Adam Thomas says childcare centres continue to sell well, with investors attracted to their stable tenancies and government support.
“They’re secure, long-term investments, underpinned by the inherent value of the business and also government policy,” he says.
“They (the Springvale centre and Laverton service station) were certainly very, very strong results.”
