‘Thriving market’: KFCs, gyms and servos join blockbuster commercial property auction
Convenience retail, fast food and childcare properties are going under the hammer this week in one of the largest commercial property auctions in years.
Commercial real estate agency Burgess Rawson will kick off its three-day auction bonanza in Sydney on Tuesday, followed by auctions in Melbourne and Brisbane over the coming days.
Property investors will get to bid on dozens of commercial properties located across the country, spanning a broad range of property asset classes.
“This is our largest portfolio offering in more than two years and showcases a vast range of quality assets across convenience retail, fast food, early education, retail, medical, and industrial sectors,” Burgess Rawson partner Raoul Holderhead said.
The big-ticket items on offer include a property with a Story House early learning centre and Gold’s Gym in Miranda, New South Wales, which is leased at a net annual rental return of $907,395.
This industrial medical property in Moorabbin, Melbourne is part of the mega auction. Picture: Realcommercial.com.au
A commercial property with a Salvos, MyCar and Lifeline in Cleveland, Queensland that returns $623,670 will also up for sale.
Additionally, a Ritchies IGA and Australia Post property in Paynesville, Victoria that offers a return of $536,127 per annum will go under the hammer.
A portfolio of three convenience retail service stations in South Australia has also joined the list, with expectations to fetch more than $23 million.
It comes as demand for convenience retail outlets gains momentum, Mr Holderhead said, with 2024 delivering sharper returns compared to the previous year.
The Peregrine On the Run (OTR)/Viva Energy portfolio will appeal to investors seeking secure, long-term leases, Burgess Rawson partner Jamie Perlinger said.
This convenience retail service station in Marryatville, Adelaide is going under the hammer. Picture: realcommercial.com.au
“With secure, long-term leases and a solid standing in the retail sector, these outlets are well-positioned to meet the growing demand for strategically located convenience stores, offering promising returns in a thriving market,” Mr Perlinger said.
Investors will also be licking their lips, as a portfolio of KFC properties joins the mega auction.
The KFC properties are situated in strategic locations across Moss Vale, Bathurst, and Young, New South Wales, with strong depreciation benefits and future upgrades.
They come with fixed annual rent increases and 10-year net leases extending to 2034, with options through to 2064.
More tasty opportunities will be on offer on the Gold Coast, with a new premium fast food and convenience retail property featuring Guzman y Gomez and Zarraffa’s Coffee hitting the market.
