$217M commercial properties sold over 3 days

This week, commercial real estate agency Burgess Rawson concluded three days of auctions, held across three eastern seaboard cities.

61 properties went under the hammer, starting at the Opera House in Sydney on Tuesday before moving to the Hilton in Brisbane, concluding yesterday at the Crown Casino in Melbourne.

47 of the properties sold, achieving a 77% clearance rate, for a total of $217 million. Melbourne had the highest success rate at 91%.

In Melbourne, two properties were sold prior: the IKEA Warehouse in Netley, SA sold for $10.6 million on a yield of 5.29%, and Cheap as Chips, Hamilton VIC, sold for $5.6 million on a yield of 5.93%.

Childcare investments made the headlines, with five childcare properties sold under the hammer, for a combined $44.7 million.

Global Sky Education in Hallett Cove, SA was fiercely contested with the $1.69 million sale achieving a record yield of 3.99% – the sharpest yield ever for a South Australian childcare investment.

While the purchaser was a local investor, interest was strong across the east coast. In total, 24 registered bidders fiercely contested the property, resulting in more than 80 bids.

Liquor assets were fiercely contested in Sydney on Tuesday.

The day started off strongly with two liquor assets selling well above reserve to local NSW investors located within 10 kilometres of the respective properties.

For example, Liquorland at Woonona, NSW, sold for $2.5 million on a 3.75% yield. There were 20 registered bidders, from investors located along the eastern seaboard. The buyer was a Sydney-based investor who only registered 10 minutes prior to the auction.

A Dan Murphy’s in Dickson, ACT, was sold for $15.2 million on a yield of 4.25%.