A property for everyone at next portfolio auction

Published on: 26/08/2019

A rare Hungry Jack’s freehold, a Woolworths Petrol station and a Centrelink office are among the 12 properties set to go under the hammer at Burgess Rawson’s upcoming Investment Portfolio Auction.

Petrol stations, childcare centres and other major office buildings will also feature heavily at the September 18 auction, as Burgess Rawson offers up one of its most diverse portfolios in some time.

Burgess Rawson director Raoul Holderhead said there were opportunities for investors at all levels, with a range of property classes on the block at vastly different price points.

“There’s a property for everyone in this campaign,” Mr Holderhead said.

“We’re selling a Woolworths petrol station in Ballarat that’s a cracking little property and is expected to sell in the mid-$800,000 range, and then we’re auctioning major office buildings in regional Victoria and New South Wales, which could sell for upwards of $6.25 million.”

The latest campaign comes off the back of boom results at Burgess Rawson’s August auction, at which more than $40 million worth of property sold at a clearance rate above 80%.

The Hungry Jack’s at Wodonga in regional Victoria is set to attract major investor interest, courtesy of a brand new 12-year lease, plus options to 2041. Positioned opposite a Woolworths and Aldi, the 2507sqm corner site has 109 metres of street frontage, along with a drive-through facility and 29 car parking spaces, and is expected to fetch more than $3.65 million.

Two major office buildings are also on offer. The first, leased predominantly to Centrelink at Bega in NSW, is a three-level building that is fully occupied by Government tenants, with the NSW Government tenanting the remaining portion of the property. It currently returns $407,398 annually, with 3% annual increases, and is expected to fetch circa $4.5 million on a 9% yield.

The second office complex for sale is in Colac and leased to accountants Findex Group. With a brand new seven-year lease plus options to 2036, the 1805sqm building is just 10 years old and is set on a 5963sqm CBD site, positioned perfectly opposite the new Coles Plaza shopping centre. The investment comes with 65 onsite car spaces and excellent tax depreciation benefits. Currently returning $450,000 annually, Mr Holderhead said he expected the property to sell for circa $6 million on a 7.5% yield.

A trio of petrol stations in regional Victoria and NSW present as three unique prospects. A Woolworths-branded station leased to major operator EG Group comes to market amid renewed demand for fuel assets, while a small Woolworths/Caltex-branded station at Ballarat is an excellent entry-level buy, with the 1004sqm CBD site occupied on a six-year lease with options to 2030. It currently returns $67,474 plus GST annually. A second Woolworths Petrol station in Kennington (Bendigo) is likely to fetch around $3.7 million, which would reflect a 6.75% yield. The Bendigo site has a secure 10-year lease to 2026.

Meanwhile, a Shell-branded station leased to Viva Energy in the NSW holiday spot of Tocumwal will also be put up for sale. Perfect for investors and owner occupiers alike. The property’s leasehold ends in 2024 with no further options.

Childcare will feature heavily at the auction, with four centres across Victoria and Queensland set to be sold after outstanding results for three properties in Burgess Rawson’s last campaign. Two of the centres are in the Geelong region, at Leopold and Grovedale, while the others are at Southport on the Gold Coast and Ashgrove in Brisbane.

With the Bunnings Warehouse brand continuing to make waves in commercial property, a site formerly occupied by the hardware superstore’s trade arm at Mitchell Park in Victoria could spark hot bidding at an onsite auction on September 19. The 2288sqm warehouse and office remains leased to Bunnings until November, and is expected to sell at a very attractive price point, below the cost of replacing the buildings.

Mr Holderhead said investors were again circling key asset classes, as the commercial market continued to rebound in the second half of 2019.

“Some of these properties have been online for only a few days, and the phone has been ringing off the hook with enquiries,” he said.

“Fast food assets have been a rare commodity on the market in the past 12 months, so investors are ready to jump when they see one, and anything with a lease to a major operator or a government tenant is proving very popular.”

Burgess Rawson’s 131st Investment Portfolio Auction will be held in Crown Casino’s River Room at 11am on Wednesday, September 18.


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