Day 1: Six Properties Wiped Off Prior to Auction Start at Burgess Rawson’s Live Portfolio Auction in Sydney.

Today marked Day 1 of Burgess Rawson’s 151st live portfolio auction at the Sydney Opera House in Sydney, and what a start it was.

Of the 24 commercial properties scheduled to be under the hammer, 6 sold prior to auction which included 3 medical centres in NSW and 3 restaurants/cafes in Canberra. With such a tempting line up of high demand commercial assets on offer, there is no wonder why some decided to get in quick and avoid the strong competition that awaited them.

“Investor sentiment is continuing to be extremely strong for well-leased commercial investments across all asset classes and this is evidenced by people trying to put their best foot forward to buy these properties at premium prices before having to compete for them in an open forum.” stated Burgess Rawson Partner, Rhys Parker “We’ve had people that have missed out, but they have some really fantastic opportunities in Melbourne and Brisbane over the coming days. Demand is as strong as we’ve ever seen it and the market, for this type of product that Burgess Rawson is the leader in selling, is extremely hot.”

As expected, the most fierce competition was for essential services such as KFC in Wellington, Advanced Early Learning in Merrylands and Viva Energy in Colyton with the lowest yields of 3.88%, 4.25% and 4.92% respectively, all reinforcing investor interest and demand for high quality, secure tenanted assets. Toyworld, Aussie Disposals & Books Plus in Bathurst NSW, sold for $1,852,000 with the highest yield of 8.36% followed by Misura Furniture in Waterloo at 5.98%.

“Today clearly illustrates that the essential services sector remains to be the most hotly contested sector in today’s market with a blended yield of 4.96%.” stated Burgess Rawson Partner and Head of Agency, Yosh Mendis. “We look forward to seeing continued success in Melbourne tomorrow and Brisbane on Thursday.”

Overall, there was confident bidding which led to an impressive clearance rate of 79% and a combined dollar value of $58,600,000 transacted.