Hungry Jack’s on the menu as auction events return
The speed and strength of Australia’s commercial property rebound in the wake of COVID-19 is set to be demonstrated as Burgess Rawson reveals its latest Portfolio Auction.
Burgess Rawson’s previous auction event was transferred to private treaty sales as the coronavirus escalated, but just six weeks later the agency has announced its next auction will go ahead with 17 impressive properties on the block.
The properties on offer include a range of essential services tenants and asset classes, including two Hungry Jack’s restaurants, fuel and convenience retail, childcare centres and government-leased offices.
Burgess Rawson director Raoul Holderhead says the auction, to be held at Crown Casino on Wednesday, June 24, will provide a telling indication of the state of the commercial property market across the nation.
“If someone had told us four weeks ago that we would have 17 properties of this calibre, we wouldn’t have believed it,” Holderhead says.
“Burgess Rawson’s auctions are always the market’s barometer, and never more so than this time around.”
“Money is as cheap as it’s ever been so we are expecting investors to be out in full force, but we also have some very realistic vendors wanting to sell. They know the world is in a strange space.”
A pair of properties leased to Hungry Jack’s will be closely watched, as fast food assets remain very popular and both offer assured rental growth. One of the properties, in Cairns, has a renewed 10-year lease to the fast food giant, returning $248,432 per annum with 4% annual rent increases, while the other at Wangaratta in regional Victoria occupies a prime pad site outside a Coles and Kmart-anchored shopping centre, returns $109,738 annually and is expected to fetch circa $1.85 million.
A selection of blue-chip service stations are expected to spark heated competition amid strong recent results in the sector, headlined by a Shell/Viva-leased corner site at a major Frankston road junction, and an opportunity to secure a highly sought-after 7-Eleven lease alongside a McDonald’s in Ipswich, Queensland. Also on offer is the long-established Caltex at Moama in New South Wales, which is expected to sell for circa $1.95 million.
Childcare will continue to ride the strength of the Federal Government’s recent support package, with five centres in Victoria and Western Australia offered with outstanding lease terms.
“It’s arguably one of the best lists of childcare centres we’ve ever had, with three brand new offerings enjoying net 20-year leases, one in Epping with a 15-year lease and one in Geelong a new 14-year lease – buy, set and forget!,” Holderhead says.
The properties at Werribee, Epping, Noble Park, Geelong and Padbury are occupied by established, respected operators with industry-leading occupancy rates.
Other properties to be auctioned include a VicRoads centre at Hamilton in regional Victoria, which is expected to sell for around $550,000 to $600,000, while a Queensland Government and medical-tenanted office in Townsville is anticipated to sell with a yield of around 9%.
Burgess Rawson’s 137th Investment Portfolio Auction will be held in Crown Casino’s River Room from 10.30am on Wednesday, June 24. In-room attendance will be restricted to 50 pre-registered bidders, with online and external bidding facilities available to other buyers.