Cashed-up investors paid almost $8 million under the hammer for four Queensland properties at the latest Burgess Rawson auctions, while a Townsville asset was snapped up before the event.
Burgess Rawson’s Glenn Conridge said investors were seeking a ‘combination of quality, balanced against a good yield’.
“They were looking for quality tenants in quality assets in what has become a slightly adjusted market that’s come about from that tougher finance climate that limits some people’s ability to participate fully in an auction.
“We’re finding the banks are getting more stingy in their ability to do what they used to do – pre-auction loan approvals,” he said.
“Now those investors can’t get loan approvals, can’t come forward by those people who are cashed up are taking advantage of this.
“They’re not subject to finance and are in most instances private self-managed super funds, and they’re coming to the fore.”
Properties sold at the auctions were:
BOQ leased, 126 Mary St, Gympie – $825,000 (8.87%)
Subway, 150-152 Main St, Proserpine – $1.25m (8.17%)
Siemens, 292-296 Alexandra St, Rockhampton – $3.3m (8.03%)
7-Eleven, 1/85 Mooloolaba Esplanade, Mooloolaba – $2.5m (8.02%)
A Penske Power Systems leased property at 720 Ingham Rd, Townsville, sold for $4.1 million a week before auction for an 8.25% yield.
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Written by Chris Herde, Brisbane Courier Mail