Officeworks, Hungry Jack’s, Nubco and childcare on offer in portfolio sale

An Officeworks, three hardware stores and fast food outlets for Hungry Jack’s and Pizza Hut are among 38 properties for sale in Burgess Rawson’s $132 million May portfolio auctions.

The Sydney and Melbourne auctions also include six childcare centres across Victoria, Queensland and Western Australia, two service stations, and an Australia Post shop.

The retail offerings in these portfolio sales highlight investor interest in businesses that are seen as somewhat pandemic proof given consumers continue to spend on fast food, home office supplies, hardware and childcare services, according to Burgess Rawson director Billy Holderhead.

“Essential service and convenience retail investments are still most coveted,” he said.  “This portfolio is comprehensive, both in property type and price point, which will attract plenty of interest.”

There is strong investor interest in fast food properties and essential services assets. Picture: realcommercial.com.au/for-sale

The May portfolio auctions are the company’s fourth consecutive auction event with more than 20 properties on offer.

“Investors are highly motivated. At our last auction, we assembled a buyer pool of more than $630 million between registered bidders in the room, online and on the phone, so we know there is a large number of unsatisfied underbidders still looking to invest,” Mr Holderhead said.

An Officeworks in Albury located on the Riverina Highway with a renewed lease until 2027 and an estimated net rent of $525,000 per annum is one of the major brand retailers included in the sale.

Regions like Albury-Wodonga have become much more attractive to city dwellers who are able to take advantage of working remotely and flexible working conditions that have arisen in the wake of the COVID-19 pandemic.

Other regional assets on offer include a Harvey Norman outlet in Broken Hill and another Harvey Norman store in Armidale.

There’s also an Australia Post store in Bendigo on the market for savvy investors. The recently-refurbished site is currently leased to Australia Post for five years up to 2024 with options to extend the lease. The building has an estimated net rent of $321,199 per annum and the tenant pays for all outgoings.

A Bendigo building that’s home to an Australia Post shop is among the auction properties. Picture: realcommercial.com.au/for-sale

The fast food and hospitality options on offer include a Hungry Jack’s in Port Kennedy in Western Australia plus a Hog’s Breath cafe and Baskin-Robbins in Morayfield in Queensland, a cafe in Truganina, a pizza shop in Wollert, and a Pizza Hut in Waterloo, 

There’s also a Taco Bill in Hawthorn, an ALH Group pub O’Malley’s Irish Pub on the Sunshine Coast in Mooloolaba and a 7-11 in Lansvale on the Hume Highway in NSW.

The auctions coincide with Tuesday’s federal budget, with the Morrison government already pledging $1.7 billion to support childcare and make it cheaper for families with more than one child in childcare through changes to subsidies.

The six childcare properties at these auctions highlight that there’s “a lot of confidence in the sector” with investors, according to Burgess Rawson director Adam Thomas.

Federal government support is underpinning investor confidence in the childcare sector. Picture: realcommercial.com.au/for-sale

“The ongoing and continued federal government support is what’s underpinning investor confidence and sentiment in the marketplace,” Mr Thomas said.

Buyers of childcare properties range from small investors to institutional investors and these properties are hotly contested at portfolio auctions, according to Mr Thomas.

“They sell for a premium,” he said.

Investors also continue to be tempted by commercial property opportunities interstate.

“As there is plenty of undeployed capital and continued low stock levels, investors are prepared to make cross border transactions,” said Mr Holderhead.

“For instance, at our last auction, three Tasmanian investments leased to hardware retailer Nubco were purchased separately by Melbourne investors.”

More Tasmanian properties leased to hardware retailer Nubco are on offer. Picture: realcommercial.com.au/for-sale

The Melbourne portfolio auction of 27 properties valued at $100 million will take place at Crown Casino at 10.30am on 12 May.

The Sydney portfolio auction of 11 properties valued at $32 million will take place on 11 May at the Sydney Opera House at 11am.