Queensland investments headline huge auction
Burgess Rawson’s expertise in the Queensland investment market was on display yesterday as nine Queensland properties sold at Burgess Rawson’s Portfolio Auction, selling for a combined $51.3 million.
The prime portfolio of ALH trophy hotels, childcare and essential service investments achieved fantastic results:
|Newstead||Industry Beans||Sold $5,150,000||4.08%|
|Caloundra||Pelican Waters Tavern||Sold $10,800,000||4.15%|
|Kedron (Brisbane)||Edinburgh Castle Hotel||Sold $7,500,000||4.65%|
|Kedron Park (Brisbane)||Kedron Park Hotel||Sold $4,600,000||4.98%|
|Toowoomba||Imagine Childcare||Sold $6,630,000||5.39%|
|Townsville||Car Wash||Sold $2,050,000||5.62%|
|Kelso (Townsville)||Affinity Education||Sold $2,435,000||6.11%|
|Brisbane CBD||Brisbane City Childcare||Sold $10,150,000||6.62%|
|Mount Isa||Government/Medical Centre||Sold $1,803,000||8.85%|
It was a hugely successful day with a 100% success rate with 26 premium investment properties selling under the hammer, achieving a combined total of over $109 million.
Director Jamie Perlinger said that demand for commercial property is stronger than ever with a $633 million buyer pool sitting in the room.
“More than 1,000 people tuned in from all over the world to watch today’s auction including New Zealand, America, Hong Kong and Taiwan,” said Mr Perlinger. “The auction room was at capacity and properties were hotly contested.”
He added that investors are eager to spend with plenty of undeployed capital sitting frustratingly idle.
“Consequently, with low stock levels, yields are contracting as investors are comfortable buying at lower yields, fuelled by record low interest rates on borrowings, in order to secure an investment.”
Burgess Rawson achieved 11% on average over reserve, equating to an extra $11.7 million for vendors.
“Today demonstrated that there is a feeling of confidence and stability as we head into the final quarter of FY20/21,” said Mr Perlinger.
Looking to divest or invest? Contact our Queensland property specialists.