Burgess Rawson Auction Reaps $108 Million Across The Eastern Seaboard

Pictured above: 35 Cotters Rd, Cnr Oherns Rd, Epping VIC 3076

Burgess Rawson concluded its Portfolio Auction 160 event in Brisbane with a whopping $108 million in sales as investors snapped up a variety of early education, convenience retail and social infrastructure assets.

The overall outcome for the three-day event saw a success rate of 78.5%.

The Brisbane event recorded $35.6 million in sales and a success rate of 86.7%, with six of seven properties sold. The Melbourne event saw $37.272 million in sales taking the Sydney and Melbourne combined amount to $72.5 million. Both days achieved success rates of 74%.

Burgess Rawson CEO Ingrid Filmer said the conservative budget announced last night has underpinned confidence in the commercial property market.

“We had strong bidding at our auctions cementing the investor confidence in solid bricks and mortar assets, with our properties achieving yields that have not correlated with interest rate rises."

A highlight was the $1.035 million sale of a Goodyear Autocare in Anderson Street, Leongatha, which sold on a yield of just 3.75%.

Early education was another strong performer with the Children’s House of Learning in St James, WA selling for $1.18 million, on a yield of 4.66 per cent. In Melton, the Story House Early Learning Centre sold for $1.75 million on a yield of 5.3%.

EG Group sold its second property, located on the corner of O’Herns and Cotter Roads, Epping, for $7.4 million. The asset provides a net annual income of $444,225 and is a significant 3,483 square metre landholding. The sale follows Wednesday's result of their Cameron Park property which sold for $7.67 million, reflecting a yield of 5.87%. 

In Whitehorse Road, Blackburn, the Daiku Restaurant in the Pace development sold for $2.35 million, reflecting a yield of 5.45%.

The Sydney auction saw 14 properties sold for a total of $35.25 million reflecting a success rate of 74%.

Highlights in Sydney include the new vacant centre in East Hills, which sold to an owner-operator for $3.977 million. If leased, it offered a potential income of $176,000, which would provide a return of just 4.43%.

A clean sweep was achieved for the four entry-level retail assets leased to NRMA. The Nowra outlet sold for $1.62 million on a yield of 6.91%, while the Picton property was the most affordable, selling for $801,000, reflecting a yield of 6.35%.