Commercial property investors have snapped up more than $73 million worth of childcare centres, showrooms and retail assets, including a trio of National Tiles outlets.
The Burgess Rawson auction at Melbourne’s Crown Casino saw a 71% clearance rate from the 24 properties put up for sale, with a further two sold prior.
Investors spent more than $21.3 million on the National Tiles outlets in Melbourne’s Mitcham and Sunshine, and Grovedale in Geelong. Each of the showroom, office and warehouse properties were offered with brand new 12 year leases plus options to 2054 with 3% annual increases.
The Sunshine property netted the strongest result, selling on a sharp 3.73% yield with a sale price of $5.38 million. The Mitcham property sold for $8.27 million and on a sharp yield of 4%, while the Grovedale property – the birthplace of the brand – sold for $7,725,000 at 4.15%.
Also trading on a 3.73% yield was an Oakleigh South showroom leased to Tasman Butchers. The 1,270 sqm two-level main road building is on 2,934 sqm of land and sold for $5.7 million with a 10-year lease to 2048 and options to 2043.
A Good Guys showroom in Mildura sold for $4.2 million, on a sharp yield 3.75%. The property is leased to The Good Guys until 2027 with no further option. The 1,413 sqm building on a high profile site of 6,699 sqm.
An Officeworks showroom property in Mildura sold for $2.885 million at 4.73%. Officeworks has a renewed five-year lease plus options to 2042 over the 999 sqm building.
The tightest yield of the day was set at 3.17%, with an investor paying $1,465,000 for the Shepparton I-Med Radiology clinic. It has a five-year lease to December 2024 plus options to 2038.
The day’s biggest price tag went to an Advance Childcare centre in Watsonia North. An investor paid $11.3 million for the 2,659 sqm corner site in eastern Melbourne, on a yield of 4.49% on the new 15-year lease plus options to 2057.
An entry-level childcare investment in Seaford sold on a 3.92% yield, for $2.325 million with a 10-year lease plus a 10-year option to Busy Bees. Another childcare centre, in Sunbury, sold for $6,575,000 on a yield 4.63% Bambini ELC has a 15-year lease plus 10-year options.
In the new Melbourne suburb of Fraser Rise, an IGA-anchored shopping centre sold for $6.81 million at 5.31%. The centre, which includes six shops, has a 7.9-year weighted average lease expiry and is on a 4,389 sqm island site.
A 3,860 sqm factory in South Albury, leased to LeedSteel and on 12,680 sqm of land sold for $5.25 million, on a yield of 6.1%.