From Little Things…Big Things Grow

This month, Burgess Rawson celebrates an unmatched milestone – 150 Portfolio Auctions.

We took the opportunity to sit with those who started it all to discuss the 20-year journey.

Partner Raoul Holderhead has been an integral part of the evolution of Burgess Rawson’s Portfolio Auctions, working on every campaign for the Melbourne team since day one.

“From humble beginnings of offering a portfolio of half a dozen properties, our auction campaigns have grown to become the litmus test of the commercial property market. All eyes are on each auction, and we are very aware of that,” said Mr Holderhead.

“It was a huge leap of faith to offer commercial property in this way, but investors embraced the process from the very beginning. Put simply, we offer high-quality properties to a captive audience of extremely motivated investors.”

“It’s a transparent process, where investors buy with confidence and certainty” continued Mr Holderhead.

Auctions are now held across three consecutive days at landmark venues in Sydney, Melbourne and Brisbane, eight times a year. The line-up has grown from less than 10 properties per campaign to up to 80 assets.

And at the front of each auction room across every campaign is arguably Australia’s best auctioneer, David Scholes.

When asked what moment stands out the most over 150 auctions, Mr Scholes said, “There are so many accomplishments I have enjoyed during my nearly 30-year association with Burgess Rawson. First and foremost, the record numbers of auctions undertaken per portfolio auction, the record prices achieved in every state and territory and the record yields across nearly every category of property investment.”

“Technology has been our biggest transformation with the introduction of live streamed auctions allowing online and telephone bidding. Burgess Rawson has certainly been at the forefront of this innovation, executing it better than any other commercial agent and, without it, property owners simply couldn’t have achieved the record results they did during the interminable Covid lockdowns.

“We are all looking forward to larger audiences at our auctions as restrictions are lifted and this will further enhance our results,” Mr Scholes added.

It is undoubtedly the depth of Burgess Rawson’s buyer pool that sets them apart from the rest of the market.

“Our buyer pool is unmatched. While we have welcomed many new investors to commercial investments over the past 12-18 months, we do pride ourselves on our long-term relationships with repeat clients who trust us to help grow their property portfolios,” said Mr Holderhead.

The auctions are also known for their quality and having the biggest line up of national tenants on offer at any point in time.

This reputation has seen Burgess Rawson awarded some of the most prestigious sale appointments in the market.

Woolworths Group has sold 38 investments through the auctions totalling $212 million, Coles Group has auctioned 21 properties worth $232 million and in FY2020, 7-Eleven knew the highly recognised event would deliver the best results for their portfolio of 34 leasebacks, which broke all sorts of records and realised a massive $159 million.

These aren’t the only big names turning to Burgess Rawson to achieve the best results. This 150th Portfolio Auction campaign includes three leasebacks on behalf of leading Australian retailer, National Tiles.

Partner Darren Beehag said the consistent performance of the auctions and evolution of the events themselves has ensured investors know where to turn for their investment needs.

“People are curious about commercial investment,” said Mr Beehag. “In the past, the auction rooms were filled with traditional commercial investors focussed on a specific sector, like fuel or fast food.

“Investors know that we offer the volume, diversity and variety of price points. In turn, the faces in the crowd at auction events have also changed over time.

“We are increasingly seeing first time investors and those that typically looked at residential assets attending our auctions.”

In addition, investors that were once focussed on one asset type are looking at commercial assets across the board.

“It is not unusual for an investor to purchase say, a fuel and convenience asset along with a childcare centre on the one auction day,” said Mr Beehag.

CEO Ingrid Filmer said that a key shift in the auction process was the move to online and phone bidding in 2020.

“This dramatically increased our reach and enabled investors to tune in to watch live worldwide or bid from home or work, even a quarantine hotel which was a first for us recently!”

Mrs Filmer added that the misconception that commercial property is complicated or only for the very wealthy is definitely changing.

“Portfolio Auctions are a great way for potential investors to get a feel for the market and see how straightforward and transparent it can be. And with investments available from as little as $500,000, more and more investors are realising the security and strength of commercial property.”