Blue chip brands Officeworks, ALH Group, Viva Energy, Australia Post and Hungry Jack’s will headline Burgess Rawson’s next $100 million Portfolio Auction on 12 May.
Burgess Rawson Director Billy Holderhead said the portfolio of 28 properties is dominated by essential service and convenience investments with childcare, fast food, retail fuel, government, liquor, medical and a bank.
“Essential service and convenience retail investments are still most coveted,” said Mr Holderhead. “This portfolio is comprehensive, both in property type and price point, which will attract plenty of interest.”
Highlight properties include a Hungry Jack’s restaurant in Port Kennedy, South Perth; a long-standing Officeworks in Albury, New South Wales; an Australia Post in Bendigo, Victoria; O’Malley’s ALH Group pub in Mooloolaba, Queensland; and a Viva Energy fuel station in Morwell, Victoria.
Childcare investments are also well represented once again with five early learning centres across Victoria, Queensland and Western Australia going under the hammer.
The May Portfolio Auction is Burgess Rawson’s fourth consecutive auction event with 20 or more properties.
“The confidence in the market right now is remarkable,” said Mr Holderhead. “Investors are highly motivated. At our last auction, we assembled a buyer pool of more than $630 million between registered bidders in the room, online and on the phone, so we know there is a large number of unsatisfied underbidders still looking to invest.”
Mr Holderhead added that recent sales results reinforced the appeal of long-term leases, quality tenants, solid returns and low volatility that essential service investments provide.
Sales data from Burgess Rawson’s first two auctions of the year show changes in investor behaviour.
“As there is plenty of undeployed capital and continued low stock levels, investors are prepared to make cross border transactions,” said Mr Holderhead. “For instance, at our last auction, three Tasmanian investments leased to hardware retailer Nubco were purchased separately by Melbourne investors.”
Mr Holderhead added that in Queensland, local investors are showing a real appetite for commercial investments in their own backyard.
“In the past, Queensland investors looking to purchase in their State were overwhelmed by Melbourne and Sydney based investors who were attracted to the ‘bang for buck’ that the Queensland market offered,” said Mr Holderhead. “But that trend is now changing, with a large number of Queensland investors more active, not only to invest in their own state, but also across borders. It’s not so easy for Melbourne and Sydney investors to pounce, so the Queensland market is really heating up.”
This sentiment is demonstrated by recent Burgess Rawson sales secured by Queensland investors:
Two investments in Berrinba, Queensland purchased by south eastern Queensland investors.
Two ALH Group hotel investments – one in Victoria and one in Queensland - secured by Brisbane investors.
A Carls Jnr restaurant in Thomastown, Victoria purchased by an investor in Noosa.
Burgess Rawson’s next Portfolio Auction will be held on Wednesday 12 May at 10.30am AEST at Crown Casino, Melbourne. For further details visit burgessrawson.com.au or call 9613 0400.
Check out the Burgess Rawson Portfolio listings here
