Burgess Rawson Auction Reaps $108 Million Across The Eastern Seaboard
Burgess Rawson CEO Ingrid Filmer said the conservative budget announced last night has underpinned confidence in the commercial property market.
“We had strong bidding at our auctions cementing the investor confidence in solid bricks and mortar assets, with our properties achieving yields that have not correlated with interest rate rises.”
A highlight was the $1.035 million sale of a Goodyear Autocare in Anderson Street, Leongatha, which sold on a yield of just 3.75%.
Early education was another strong performer with the Children’s House of Learning in St James, WA selling for $1.18 million, on a yield of 4.66 per cent. In Melton, the Story House Early Learning Centre sold for $1.75 million on a yield of 5.3%.
EG Group sold its second property, located on the corner of O’Herns and Cotter Roads, Epping, for $7.4 million. The asset provides a net annual income of $444,225 and is a significant 3,483 square metre landholding. The sale follows Wednesday’s result of their Cameron Park property which sold for $7.67 million, reflecting a yield of 5.87%.
In Whitehorse Road, Blackburn, the Daiku Restaurant in the Pace development sold for $2.35 million, reflecting a yield of 5.45%.
The Sydney auction saw 14 properties sold for a total of $35.25 million reflecting a success rate of 74%.
Highlights in Sydney include the new vacant centre in East Hills, which sold to an owner-operator for $3.977 million. If leased, it offered a potential income of $176,000, which would provide a return of just 4.43%.
A clean sweep was achieved for the four entry-level retail assets leased to NRMA. The Nowra outlet sold for $1.62 million on a yield of 6.91%, while the Picton property was the most affordable, selling for $801,000, reflecting a yield of 6.35%.