Investors hungry for Mexican at final portfolio auctions
Investors have stuffed their Christmas stockings at the final Burgess Rawson portfolio auctions of 2017, grabbing more than 70% of the properties on offer across two days of auctions in Melbourne and Sydney.
The sales brought the total amount of property sold across the agency’s eight two-day auctions throughout the year t0 $862 million, with yields averaging a sold 6.4%.
Among the key results this time was the sale of a retail outlet leased to Mexican fast food restaurant Guzman Y Gomez at Coffs Harbour on the New South Wales coast. The 205sqm store occupies a 1078sqm site and is leased to the restaurant until at least 2027, with options through to 2037.
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It fetched $3.11 million on what Burgess Rawson Sydney director Simon Staddon described as an “aggressive” 4.5% yield.
The Guzman Y Gomez store is opposite a Bunnings Warehouse.
“The Sydney market has continued to kick on this year, and Tuesday’s auction was a great example of the continued trend. Despite enquiry in some sectors being down on twelve months ago, there is still strong investor demand for A-grade product in most asset classes with a focus on quality,” Staddon says.
The strong results were led by fast food and childcare, with the real standout result being the Guzman Y Gomez sale in Coffs Harbour.”
There were mixed results for three of the highly touted properties at the Melbourne auction.
The office and retail complex on Pall Mall in Bendigo.
A new childcare centre leased to ASX-listed Think Childcare at Yanchep in Western Australia sold for $4.43 million, on a yield of just over 6.3%.
A two-level commercial complex that is home to Zambrero’s restaurant and a government-backed not-for-profit group in the Victorian regional city of Bendigo, didn’t find a buyer at auction but later sold after subsequent negotiations.
And a prime retail store near Prahran’s iconic Chapel St retail precinct was passed in at $1.375 million.
The Officeworks store at Taree sold at the latest Burgess Rawson auctions.
At the Sydney auction, an Officeworks at Taree in New South Wales achieved $3.855 million on a handy 8.44% yield. The outlet is leased to the stationery and office equipment provider until 2021, with options to 2041.
A Domino’s-leased pizza store at Figtree was snapped up for $1.2 million, while an Airlie Beach shop leased to Cotton On Group brand Factorie changed hands for $1.13 million.
