Petrol stations drive CRE auction

COMMERCIAL property investors have snapped up another $28 million worth of convenience stores and restaurants yesterday, at the second of this week’s three Burgess Rawson portfolio auctions.

Yesterday’s Melbourne event saw a 7-Eleven in Hawthorn East sell for $6.7 million on a tight yield of just 3.94%.

The clearance rate was 81.25%, following six out of nine selling at Tuesday’s Sydney event for more than $31 million in total, at which a Jamisontown 7-Eleven sold for $6.2 million showing a yield of 4.99%.

“Today’s results also show demand for essential services such as convenience retail, food and medical continued to whet investor appetite because they offer secure long-term leases and recession proof,” Burgess Rawson CEO Ingrid Filmer said.

International restaurants were in demand, with Pettah Road Café selling for $2.35 million reflecting a yield of 4.88%, while Namak Indian restaurant in Prahran sold for $2.1 million on a yield of 5.38%.

Regional properties remain sought after. A medical centre in Wodonga sold for $4.605 million, while Leongatha Nextra was contested by eight registered bidders and received 55 individual bids to reach $924,000, on a yield of 5.98%.

Sydney’s top sale of the day was a group of four restaurants at Campbelltown selling for $9.15 million, reflecting a yield of 6.22%.

The next portfolio auction will be held today at the Hilton in Brisbane from 10.30am AEST.