Portfolio auctions bounce back in big way
Investors have dived back into the commercial property market with gusto at the most recent Burgess Rawson portfolio auctions.
After a slower first half of the year the June auction rebounded in a big way, with only one of the 17 properties on offer at the agency’s Melbourne auction left on the table by day’s end.
Around $35 million worth of property changed hands, with childcare centres and retail outlets figuring prominently among the big ticket items.
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The day’s top result was a First Choice liquor store at Albury on the New South Wales-Victorian border, which topped out at $6.6 million – $1.6 million above its reserve.
The property attracted 48 bids as potential buyers staked their claim.
The childcare facility at Geelong West in Victoria sold for almost $5.5 million.
A Woolworths petrol station in Moruya in New South Wales was also keenly contested, with its $910,000 final price reflecting a yield of 4.86%, while a Dulux retail centre in Mill Park drew 65 bids before selling for $1.955 million on a 5.83% yield.
No less than five childcare centres found new owners at the auction, with sales totalling more than $15 million, while another was under contract late last week.
Among them was one at Geelong West in Victoria, which sold for $5.45 million, another at Edmondton in Queensland, which traded for $3.6 million, and one at Roxburgh Park, which reached $2.67 million.
“The childcare result was not surprising,” Burgess Rawson associate director Adam Thomas says.
“This asset class continues to deliver for investors. Yields have stablised despite stock volumes continuing in an upward trend. In 2018, (Burgess Rawson) has sold 28 childcare centres valued at over $110 million.”
