Investors snap up $67M of commercial property in a day
In a sign of the continued strength of the Australian commercial property market, Burgess Rawson’s first portfolio auction for 2021 (held yesterday) saw twenty properties worth a combined $67M sell under the hammer.
The Crown Melbourne auction room was at capacity, with 3,000 investors also tuning in. Burgess Rawson Melbourne Director Raoul Holderhead describing the results as “extraordinary”, achieving $5.35 million above reserve.
“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.”
Highlights of the action included 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%.
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. All six childcare properties put up for auction sold on the day, including a Little Acorn childcare centre in Mt Martha, Victoria, selling for $6.3 million.
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% of bids received online.
Burgess Rawson’s next auction will take place on 31 March at Crown Casino Melbourne.
SOURCE: Charlie Gunningham, The Property Tribune