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.

The childcare facility at 16 Keong Rd in Albany.

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.

One of the two Cranbourne shops for sale at the Burgess Rawson auction.

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.