$100M commercial portfolio for auction on one day

After investors snapped up $67M of property in one day last month, this month Burgess Rawson are putting $100M of commercial property on the block on a single day.

The 27 properties include seven childcare centres, seven retail investments and five pubs/bars. Among the rest, medical, fast food, fuel, a café and coffee roastery and a car wash make up the balance.

Burgess Rawson Director Raoul Holderhead said the highlights include the Carls Jnr restaurant in Thomastown which will be the first Victorian restaurant in the global burger chain’s network to be brought to auction.

“We understand that this restaurant is the brand’s best in the nation,” said Mr Holderhead. “Early price expectations are circa $5.5 million.”

Among the 27 properties, there are some “entry-level” opportunities as well as an asset expecting to go for at least $11.5 million.

In addition, four ALH Group investments in Queensland and Victoria will go under the hammer, each offering 25-year triple net leases. Prices are expected to range from $2.7-7.6 million.

“We expect plenty of interest in these properties, especially as Endeavour Group – Australia’s largest hotelier and liquor retailer – announced a 335% rebound in the ALH Group half-year profit last month.” 

Raoul Holderhead, Burgess Rawson Director

Burgess Rawson childcare specialist Adam Thomas said that the childcare investments should be in high demand.

“In this portfolio, we expect to achieve sale prices from $2 million right through to more than $7 million,” said Mr Thomas.

“The appeal of childcare investment continues to prevail. We are consistently breaking yield records and investors are certainly prepared to spend the money to secure a prime property with a long term lease and quality tenant.”

Last month, there were 215 registered bidders and 3,000 people watching the auction take place online. The 20 commercial investments achieved $5.35 million above the reserve and yields as low as 4.24%.

This month, the auction takes place on Wednesday 31 March at 10.30am AEDT at the Crown Casino in Melbourne.

SOURCE: Charlie Gunningham, The Property Tribune.