Borders no barrier for auction buyers in $35m spree
Borders were no barrier for investors at Burgess Rawson’s latest Investment Portfolio Auction, with buyers aggressively and successfully pursuing a string of interstate properties.
Seven of the eight properties that sold at the agency’s Melbourne auction were purchased by investors from outside each property’s state – including an international buyer – with almost $35 million worth of investments changing hands across two days of sales.
A Perth investor snapped up the auction’s trophy property, a Coles Express service station positioned alongside a Brisbane shopping centre at Silkstone, with heavy competition seeing the yield crunched to just 5.34%.
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A South African buyer swooped moments before the auction of a Queensland office, paying $2.7 million for the government-tenanted asset.
A trio of childcare centres also attracted keen interest. A double-storey facility tenanted by Green Leaves at Albany Creek in Queensland sold to a Melbourne buyer for $5.875 million on a 6.03% yield, while a centre leased to industry goliath G8 Education at Curlewis, near Geelong in Victoria, traded to a Sydney investor for $4.815 million, representing a 6.38% yield. Another centre at Maddingley, near Bacchus Marsh in Victoria, sold after auction for $4.325 million on a 7.21% yield.
Burgess Rawson childcare specialist Adam Thomas said childcare was again squarely on investors’ radars.
“On top of the two auction sales, we’ve also recently concluded a deal for a G8-leased centre at Epping, which sold for $4.78 million on a yield of 5.78%,” Thomas said.
“The standout result for the Albany Creek property is right in line with the sale of the Buderim centre on a 6.02% yield at our last auction, while the Curlewis result is very similar to another of our regional Victorian sales at Wodonga, which recently sold on a 6.42% yield.”
“This clear demand means childcare asset sales have an air of predictability around them, which is driving further confidence in the market.”
Meanwhile, a small specialised supermarket at Cranbourne North in Melbourne’s south-east was the flavour of the month for another Sydney investor, who paid $735,000 on a sharp 6.12% yield.
A Sydney investor was also successful in snaring a Mount Isa property leased to cafe chain Coffee Club, which reached $865,000.
The only property to sell to a buyer from its own state was a NAB-leased building at Corowa in New South Wales, which was also collected by a Sydney purchaser for $681,000 on a yield of $6.49%.
There was also activity in the room for the Euroa Medical facility in regional Victoria and a new Metro Fuel-tenanted service station at Ballina, with post-auction interest expected to deliver a result by the end of the week.
The strong results come after all five properties offered at Burgess Rawson’s Sydney auction on Tuesday, for a 100% clearance rate.