$156M of commercial properties sold under the hammer

Burgess Rawson‘s 145th monthly commercial portfolio auction took place in Sydney and Melbourne this week, with a combined $156 million of property (40 properties in total) selling over the two days.

The Sydney auction on Tuesday saw sixteen of the twenty-one clearing for a total of $33.7 million, while Melbourne sold 24 properties for $122.3 million yesterday.

Overall, the success rate was 82%, as 172 investors walked away unsatisfied with an estimated $748 million of undeployed capital. Overall, demand outstripped supply in the rooms by a factor of six.

Over in Sydney, the hero sale of the day was a KFC restaurant in Forster NSW. The fast food and beverage tenanted asset received more than 350 enquires and 100 contract requests prior to auction and was fiercely bid on during the auction with the buyer snapping up the property for $2,830,000 on an extremely low yield of 2.93%.

In addition, the St George Bank at Bega was bought prior to auction and a further four properties are currently under negotiation.

Burgess Rawson Director Kieran Bourke said the interest for entry-level assets showed how many investors are turning to the commercial property market for solid investment opportunities.

The in-person auctions all took place according to strict Covid-19 guidelines, with masks and social distancing.