Hungry investors succeed at auction

Almost 3,000 investors tuned in across the world to watch Burgess Rawson’s first Portfolio Auction for 2021 at Crown Melbourne yesterday. The room was at capacity as 20 commercial properties sold for a combined total of more than $67 million. 

Burgess Rawson Melbourne Director Raoul Holderhead said that the results were extraordinary, achieving $5.35 million above reserve and yields as low as 4.24%. 

“Interest in this portfolio has been nothing less than remarkable,” said Mr Holderhead. “Compared to last year, our enquiry levels were triple and that pent up demand resulted in great results in the auction room. 

“We estimate that the buyer pool was $510 million which means current demand outweighs supply more than seven and a half times.” 

Highlight sales included a Viva Energy fuel station at Torquay in Victoria which took 105 bids to eventually sell for $8.355 million on a yield of 4.89%. 

And, A Wattyl Paint store in Port Adelaide in South Australia achieved a yield of 4.24%, selling for $2.36 million. 

The childcare investment market continues to go from strength to strength with another clean sweep. All six properties in the portfolio sold on the day, including a Little Acorn childcare centre in Mt Martha, Victoria that achieved the lowest yield for a new childcare centre in the past two years, selling for $6.3 million on a yield of 4.86%. 

Mr Holderhead added that two campaigns that were abandoned last year due to COVID impacts were successful.   

“These investments were an Ampol fuel station at Gladstone in South Australia and an Autobarn in Eltham in Victoria,” said Mr Holderhead. “Both sectors have benefited from improved trading conditions during the pandemic. For instance, Autobarn sales are up 37% during COVID. We saw great results for these investments at auction.” 

Across the portfolio, 215 people registered to bid with interest across Australia, as well as India, New Zealand, Singapore, Hong Kong, China and the US. Bidding was available via phone, online and in-person at Crown Melbourne with more than 20 percent of bids received online.  

Burgess Rawson’s next Investment Portfolio Auction will be held from 11am AEDT on Wednesday 31 March at Crown Casino Melbourne.