Strong interest in SA investments

Published on: 16/11/2021

The $10.6m sale of IKEA’s distribution centre in Netley headlined the list of South Australian property sales at Burgess Rawson’s most recent portfolio auction.

Last week’s auction event secured buyers for seven local properties including the IKEA facility, which sold at a yield of 5.29 per cent, and a childcare centre at Hallett Cove that sold for $1.692m representing the tightest of yields for the day at 3.99 per cent.

Other sales included offices in Port Lincoln which sold for $1.58m at a yield of 4.78 per cent, a BOC Gas & Gear industrial site in Whyalla which sold for $3.3m at a yield of 5.75 per cent and a Terry White pharmacy on Hutt St, in the CBD, which sold for $2.525m representing a yield of 4.75 per cent.

Burgess Rawson national head of agency Adam Thomas said interest in the South Australian investments from across the country was “exceptionally strong”.

“South Australian investments are certainly attracting interest from across the eastern seaboard,” Mr Thomas said.

“While the Hallett Cove asset was ultimately sold to a local investor, the level of enquiry from across NSW, Victoria and Queensland was outstanding.

“We had 24 registered bidders on this property alone, which resulted in a fiercely contested auction with more than 80 bids.

“The results show how motivated investors are to purchase in South Australia.”

Close to $217m worth of property was sold at last week’s three-day auction event, with 47 of the 61 properties offered selling either under the hammer or prior to auction

Adelaide Advertiser


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