Childcare, $13m Woolworths headline auction binge

The Woolworths at Maryborough in Queensland sold for $13 million.
The Woolworths at Maryborough in Queensland sold for $13 million.

A Woolworths that sold for $13 million and a investor binge on childcare centres headlined this week’s Burgess Rawson investment portfolio auctions in Sydney and Melbourne.

More than $104 million worth of commercial property sold over two days, with investors snapping up 32 of the properties on offer.

In Sydney, the prime locations of a string of five childcare centres tenanted to G8 Education led to some of lowest yields ever recorded for the asset class, with the centres selling for a combined $22.615 million and on an average yield of just 3.89%.

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The most coveted of the Sydney properties, a 56-place centre at Kensington, sold for $5.95 million on a yield of just over 4%. Others at Vaucluse ($4.425 million), Chifley ($3.26 million) and Maroubra ($3.53 million) also sold strongly.

Kensington childcare Sydney Burgess Rawson

The prime childcare centre at Kensington in Sydney’s inner city.

Meanwhile, at the Melbourne auction a further eight centres sold for a combined $25.15 million, with a Frankston North property achieving the highest price at $5.4 million.

The Woolworths at Maryborough in regional Queensland attracted keen interest from a number of bidders before selling for $13 million on a 5.98% yield. Leased to Woolworths on a 20-year lease to 2033, with three further 10-year options, the 4105sqm store was substantially refurbished four years ago.

Red Rooster Shailer Park Queensland

The Red Rooster at Shailer Park in Queensland.

United Petroleum’s selldown of many of its petrol stations also continued through the auctions, with one station at Launceston in Tasmania selling for $4.05 million on a 5.9% yield, while another at The Basin in Melbourne’s outer-east trading for $4.035 million on a 6.2% yield.

A pair of Red Rooster restaurants were also hot property, with one at Shailer Park in Queensland bought for $3.345 million and the other at Wodonga in Victoria for $2.71 million on a yield of 5.1%.