Investors eagerly await huge $100 million portfolio auction
Investors will be spoilt for choice when Burgess Rawson Melbourne brings the best commercial investments across Australia to the market on 31 March with a huge $100 million essential service portfolio.
Burgess Rawson Director Raoul Holderhead said to offer 27 high quality properties in one location, on the one day is remarkable.
“The quality is exceptional across the board,” said Mr Holderhead. “And with such a large number of properties, the price expectations will have wide appeal, ranging from entry level prices to in excess of $11.5 million.”
The auction will be headlined by seven childcare centres, seven retail investments and five pubs/bars demonstrating the diversity of the portfolio. The remaining investments are medical; fast food; fuel; a café and coffee roastery; and car wash.
Mr Holderhead said that highlights include the Carls Jnr restaurant in Thomastown which will be the first Victorian restaurant in the global burger chain’s network to be brought to auction. “We understand that this restaurant is the brand’s best in the nation,” said Mr Holderhead. “Early price expectations are circa $5.5 million.”
In addition, four ALH Group trophy investments in Queensland and Victoria will go under the hammer, each offering coveted 25-year triple net leases. Prices are expected to range from $2.7-7.6 million.
“We expect plenty of interest in these properties, especially as Endeavour Group – Australia’s largest hotelier and liquor retailer – announced a 335% rebound in the ALH Group half year profit last month,” said Mr Holderhead.
Burgess Rawson childcare specialist Adam Thomas said that the childcare investments will be hotly contested with a comprehensive range of price points.
“In this portfolio, we expect to achieve sale prices from $2 million right through to more than $7 million,” said Mr Thomas. “The appeal of childcare investment continues to prevail. We are consistently breaking yield records and investors are certainly prepared to spend the money to secure a prime property with a long term lease and quality tenant.”
Mr Holderhead said that Burgess Rawson’s hugely successful February auction saw almost 3,000 people across the world tune in to watch live and more than 215 people registered to bid. On the day, 20 commercial investments sold for a combined value of more than $67 million, achieving $5.35 million above reserve and yields as low as 4.24%.
“Some vendors were watching the market and when they saw the results from the last auction and the huge level of enquiry, they moved quickly to be included in this portfolio,” said Mr Holderhead. “We are expecting another big day.
Burgess Rawson’s next Portfolio Auction will be held on Wednesday 31 March at 10.30am AEDT at Crown Casino, Melbourne.