Childcare in the crosshairs amid mixed auction results
Investors were both hot and cold at the latest Burgess Rawson investment portfolio auctions, with some assets keenly contested but others yet to find new owners.
About $80 million worth of commercial property sold across two days of auctions in Melbourne and Sydney, as childcare centres, service stations and supermarkets again proved to be in hot demand.
One of the eight childcare centres offered up, at Kellyville Ridge in New South Wales, sold for $2.55 million on a 3.97% yield, while another at Condell Park netted $2.23 million on a 4.22% yield.
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A Woolworths and BWS liquor store at Hadfield in Victoria sold for $8.75 million on a 4.71% yield, while a property with leases to Caltex and Red Rooster at Goulburn in New South Wales fetched $4.53 million on a yield just beyond 5%.
A Woolworths at Hadfield was the big ticket item at the Melbourne auction.
But buyers were slow to emerge at the Melbourne auction on Wednesday, where eight of the 17 properties listed sold at auction, while another – an outlet leased to Total Tools in Cairns – received an offer post-auction.
A pair of childcare centres at Mount Barker in South Australia and Port Douglas in Queensland both sold on investor-friendly yields of 6.42% and 6.97%, and a Domino’s pizza parlour flirted with the $1 million mark before selling for $990,000 on a 5.79% yield.
Among the properties that went unsold, a residential building set up as short-stay accommodation on Hoddle St in Richmond was passed in after a vendor bid of $2.2 million, while childcare centres at Lara and Beveridge in Victoria were also overlooked.
A 7-Eleven outlet at Carrum Downs, an Officeworks at Mildura, Caltex at Mount Warren Park in Queensland, IGA X-press plus Liquor at Orbost and a property leased to Cranston’s Pies at Rockhampton in Queensland also missed out at the Melbourne auction.
