Written by Adrian Ballantyne, Real Commercial
Investors have stuffed their Christmas stockings with almost $100 million worth of commercial property at the final Burgess Rawson investment auctions of the year.
The auctions saw around $98 million in properties sold in two days of auctions in Sydney and Melbourne, bringing total sales for the year’s auctions across both cities to almost $1 billion.
Banks and service stations continued to be keenly sought after among bidders, with a trio of properties leased to Westpac in country Victoria snapped up on Wednesday.
The most popular of the three was the Westpac on Mitchell St in Bendigo, which sold for $4.575 million on a tight 4.22% yield.
The two-level, 795sqm building is leased to Westpac until 2025 and returns more than $193,000 in rent per year.
A larger Westpac on Sturt St in Ballarat sold for $5.7 million on a 6.59% yield, while the third, in Wonthaggi, went for $1.275 million.
A Caltex service station in Deer Park, Victoria, and a Shell Coles Express in Coffs Harbour both found new owners, with the Shell property going for $6.21 million on a 6.11% yield and the Caltex for $4.8 million on a yield of 5.9%.
A South Australian childcare centre leased to industry giant G8 Education in Salisbury Heights sold for $1.8 million
Investors showed they were prepared to look further afield for opportunities, with a retail complex in the Hobart CBD, featuring high-profile tenants including Sheridan, Ella Bache and Ishka and net rent of more than $550,000, grabbed for $5.8 million on a 9.46% yield.
Proving that popular local assets have a place alongside big name brands, Kilmore hotel Mac’s sold for $880,000 on a yield of 7.95%.
Keen bidding for a Whittlesea fish and chip shop pushed the price out to $935,000 and the yield down to 5.76%, while a neighbouring deli and cafe sold for $730,000.