Day 3: “Beautiful One Day, Perfect the Next” Brisbane Results Shine for the Last Day of the Burgess Rawson’s Live Portfolio Auction.

Day 1 of the Burgess Rawson Live portfolio auction at the Sydney Opera House was ‘beautiful’. 6 properties sold prior to commencement of the day and 19 out of 24 properties sold at levels that exceeded the expectations of most. Then Day 2 at Crown, Melbourne happened. And it was ‘perfect’. With a clearance rate of 96% and more than $102 million of property value exchanged, the venue was brimming with happy vendors and buyers.

The sentiment continued today, being Day 3 in Brisbane, with 11 of the 15 properties lined up, being sold collectively for more than $25 million and an average yield a tick over 6%.

Petrol stations appeared to be the main focus with plenty of opportunity for investors to fuel up. Of all the properties on offer, 6 were petrol stations (or 7-Eleven stations) and all but one sold with attractive lease terms and yields. The key takeaway here illustrating the tenacious demand for essential service assets that have high quality tenants and long-term leases in industries that continue to operate strongly throughout adverse world events. As Burgess Rawson Head of Agency Adam Thomas said: “Two of the petrol retail leases were extraordinary – going to the mid-2030s with options to extend to the eighth decade of this century.”

7-Eleven in Nambour was the highest value asset sold at $4,825,000 and a 5.29% yield, followed by the Kedron Puma service station, soon to be rebranded as Caltex. This sold for $4,310,000 and a 5.75% yield with a long term lease in place until 2035 with options to 2075. The Bundaberg Puma service station also sold with a similar yield at 5.41% for $2,570,000.

Burgess Rawson have clearly enjoyed another successful portfolio auction this month and we all look forward to tuning in to the next one, scheduled for May 10, 11 and 12.