Melbourne’s 129th Portfolio Auction

Published on: 05/06/2019

A brand new Bunnings and a superbly located Shell Coles Express service station headline an exceptional list of commercial properties being sold as part of Burgess Rawson’s latest Investment Portfolio campaign.

Fourteen properties will be auctioned at the agency’s 129th Portfolio Auction on June 26 in Melbourne, while another two, including the Bunnings, are being sold through expressions of interest.

The Bunnings at Kingaroy in Queensland is set to be the first of the hardware giant’s freestanding stores to be sold in 2019, and is one of the few Bunnings ever to be offered with additional land, which allow for future store expansion.

The 24,200sqm site developed by one of Australia’s most experienced Bunnings builders, has an adjoining 3,190sqm parcel of surplus land and is being offered with a 10-year lease plus six eight-year options. It currently attracts a rental income of $800,000 plus GST, with 2.5% annual rent increases.

Drawing significant investor attention at the Portfolio Auction will be a near-new Coles Express at Silkstone in Queensland, which occupies one of the best suburban fuel retail sites anywhere in the state.

The asset is being sold on behalf of Coles, who will continue to operate the station on a 10-year lease to 2029, with options to 2049. It has an estimated net income of $205,000 per annum, with fixed 3% annual increases and Coles paying all the usual outgoings.

A second service station at Ballina on the NSW coast is also set to attract investor attention. The brand new investment at the gateway to Byron Bay has a 15-year net lease to 2034, with options to 2054, occupies a strategic 1641sqm main road site just moments from the Ballina CBD and returns an annual income of $305,000, with fixed 3% net increases and all outgoings paid by the tenant, including land tax.

A pair of stunning regional buildings in Victoria and New South Wales, both leased to NAB, will be auctioned. The longstanding NAB site at 131 Gray St at Hamilton in Victoria will be auctioned with a renewed lease to the banking giant and options through to 2026. It currently earns $125,083 plus GST per annum, and is expected to sell on a high, investor-friendly yield. The other property at Corowa in New South Wales will be a target for entry level investment, with a price tag in the $600,000 range and a brand new three-year lease to NAB.

Three childcare centres are also to feature prominently. A stunning, high-end double-storey facility at Albany Creek in Brisbane, leased to major operator Green Leaves Early Learning, offers a long lease in a prime location. The 848sqm centre occupies a prominent 1202sqm site opposite Hungry Jack’s and ALDI stores, and sits at the gateway to the Albany Creek retail precinct.

Meanwhile a property at Curlewis, in the Geelong region, leased to childcare industry heavyweight G8 Education, licensed for 93 long day care places and only a short distance from a local primary school will be sold, and a Bacchus Marsh centre operated by Affinity Education is also on offer, with both properties expected to sell on yields of around 6-6.5%.

Always a popular asset class, a medical centre in the Victorian regional centre of Euroa, featuring two new leases to the centre operator and Melbourne Pathology, provides a net income of $285,073 with the anticipated price of $3 million plus providing investors with a circa 9% yield.

An immaculate North Melbourne office enjoying a brand new fitout, a five-year lease to a global healthcare education provider and a location close to the city’s hospital precinct is on the auction block, while an enticing yield of around 10% is expected for a Beenleigh office building leased to Logan City Council.

At Cranbourne in Melbourne’s booming south-eastern corridor, two neighbouring shops are to be auctioned, with their position opposite a Woolworths supermarket expected to harvest interest.

After May’s standout Burgess Rawson Investment Portfolio Auction, which saw 12 properties sold to investors for around $23 million at a clearance rate of almost 86%, director Shaun Venables said it was clear that commercial property is still in investors’ sights.

“Vendors are being realistic and that’s giving investors confidence to put time into pursuing commercial investment properties knowing that they are not undertaking a pointless exercise,” Venables said.

“The commercial market will usually remain fairly buoyant during more challenging conditions, particularly for quality leased investments such as those being offered to investors at this month’s auction.”

Burgess Rawson’s 129th Investment Portfolio Auction will be held in Crown Casino’s River Room at 11am on Wednesday, June 26.


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