82% Clearance Rate for Commercial Auctions

Lockdowns across Sydney and Melbourne did not deter investors yesterday as 23 commercial properties sold (from 28), for a combined value of $76,516,000, according to Burgess Rawson‘s monthly portfolio auction.

This equated to an 82% success rate, with auctions held remotely with bidding available via phone and online, as well as in-person at interstate locations (including the Hilton Brisbane).

Overall, 738 bids were received from more than 300 bidders throughout the day, with properties going for an average of 12% above reserve price (or $7.9 million in total) and demand outstripping supply 12 to one.

The blended yield was 4.73%.

The $2,650,000 sale of a Bridgestone in Flagstone, Queensland achieved a new record yield for Bridgestone investments in the sunshine state, achieving a yield of 3.77%. Three Bridgestone properties have sold over the past 18 months with the previous record at 4.25%.

An ALH hotel at Toowong in Queensland – The Royal Exchange Hotel – sold for $14,050,000 on a yield of 4.01%, achieving a record yield for ALH investments.

Retail fuel continues to have wide appeal with three Shell/Viva Energy investments in South Australia and Tasmania, and two United assets in Victoria achieving successful results above the reserve.

Last week, Burgess Rawson held their commercial auction in Sydney, where 16 of the 18 (89%) assets sold for a combined $42 million.

In June, Melbourne sold 24 assets for $122.3 million, with Sydney clearing 16 of the 21 assets presented for a combined $33.7 million.