Burgess Rawson is excited to present their latest portfolio to the national market. With more than 60 premium investments placed up for sale, Portfolio 147 is the largest commercial portfolio auction to ever hit the Australian market.
Showcasing the latest high-profile commercial assets across Australia, the 3 day auction event takes place in Melbourne, Brisbane and Sydney.
September 28th - Melbourne
As Victoria endures tough lockdown restrictions, the much anticipated auction event continues to shine, achieving a jaw-dropping 95% success rate. 189 registered bidders joined in the action throughout the day, as just over 500 bids in total were placed.
The 20 sold properties recorded a combined value of $83,261,000 with a blended yield of 4.64%. The thoroughly successful day achieved $8.158 million over the reserve (11%).
The event started strongly as 'Kingston Funerals, Cheltenham, Victoria’ kicked off proceedings, achieving a fabulous sale of $3,830,000, generating a yield of 3.78%. With 14 registered bidders, the near 45 minute auction gathered 69 bids and was finally snapped up by Melbourne based, Chinese buyer.
After fierce competition from 10 bidders 'Coates Hire, Albert Park, South Australia’ also performed impressively well, selling to an Adelaide-based investor for $16,100,000, achieving a yield of 3.59%. Burgess Rawson in conjunction with Knight Frank handled the sales campaign.
Another notable sale of the day was 'Sunbury Ford, Victoria’, which scored 75 bids, selling for $9,610,000 (5.20% yield) to a Sydney-based investor. The investor has been highly active, purchasing assets at Burgess Rawson’s Portfolio events this year, totalling approximately $15 million worth of property and fascinatingly, purchasing all the sites unseen.
Commenting on the impressive results recorded in Melbourne Burgess Rawson Partner, Billy Holderhead said “Today’s results certainly demonstrate the ongoing, high confidence investors have in the commercial sector. Buyers are highly motivated,”
“Essential service assets are still most coveted, with many cross border transactions and properties purchased sight unseen due to community restrictions.
“We estimate that there are 9.5 buyers for every property at the moment which is incredible.”
September 29th - Brisbane
Following the prolific results achieved in Melbourne at yesterday's Burgess Rawson Auction, all eyes turned to the sunshine state. 18 Properties went up for sale as Portfolio 147 continued. It was safe to say that Brisbane did not disappoint as more outstanding results were recorded.
A 94% success rate meant that 17 properties sold under the hammer at the prestigious auction event, totalling a value of $51,405,000, and a blended yield of 4.99%. The day also achieved $5.985 million over the reserve, equating to 13%.
231 registered bidders had their sights set on the high-profile assets, whilst the day saw a total of 520 bids placed across the 18 properties that went up for sale.
The Sanctuary 'Early Learning, Bentley Park, Queensland’ was the only property that sold prior to the event, selling for $6,950,000 (5.45% yield).
The day got off to a very fast start as 'Jax Tyres, Michelton, Queensland’ drove as many as 25 bidders to place a total of 53 bids, eventually selling to a Melbourne based investor (site unseen) for $4,520,000, 29% above the reserve, and achieving a yield of 3.10%.
Investors were hungry to grab the 'KFC & Pizza Hut, Uraween, Queensland’, which ended up selling for 35% above the reserve as a whopping 84 bids were placed, selling for $7,960,000 (3.98% yield).
Childcare centres were hot property throughout the day with four centres located at Banyo, Nerang, Caboolture and Bentley Park all achieving a combined value of $17,781,000. The sales have resulted in the continued streak of all childcare centres selling under the hammer at Burgess Rawson’s auctions in 2021.
Speaking about Brisbane’s tremendous display of results Burgess Rawson’s Joint Head of Agency in Queensland Campbell Bowers stated “The investment market is exceptionally strong off the back of Covid-proof assets trading well throughout lockdowns."
“Tenants underpinned by essential services dominated the playing field and achieved the strongest yields."
September 30th - Sydney
With 37 properties finding new owners over the last two days across Melbourne and Brisbane, it now was Sydney’s time to shine as Portfolio 147 was coming to an end. 15 specialised commercial assets were placed up for sale during the remote auction event.
The day pleasingly recorded more tremendous results as 12 properties sold under the hammer, leading to an 80% success rate. The combined value of the sales equated to $54,352,000 with a blended yield of 4.53%. The great results led to $7,750,000 over the reserve (14%).
More than 134 registered bidders participated in the auction event, whilst a total of 326 bids were placed throughout the day.
The 'Affinity Childcare, Pitt Town New South Wales’ & ’Shell Service Station, Kurri Kurri, New South Wales’ sold prior for $8,725 million (5.05% yield) & 3.75 million (6.8% yield) respectively.
The greatest highlights from the day were two childcare centres, 'Handprints Childcare, Turramurra, New South Wales’ & 'Affinity Childcare, Umina Beach, New South Wales’, selling for $8 million (3.3% yield) & 7.5 million (2.99% yield) respectively. Both childcare centres received 50 bids each and were snapped up by local investors.
Commenting on the fantastic results that the childcare assets recorded, Burgess Rawson Associate Director (Childcare) Michael Vanstone stated, “There’s pent-up demand for people to park their money and today’s results showed that. People are willing to buy quality assets such as childcare and put their hard earned money into this asset class - today showed that Childcare is well and truly above every asset class.“
“On the back of the first two days, the momentum continued. We were seeing great results throughout the day and it shows how good the Burgess Rawson auction system is.”
“Regardless of the climate we’re in, childcare is well and truly above most other asset classes, especially if you can buy something at 2.99% [yield] - there’s no other asset like it at the moment."
In just 72 hours, Burgess Rawson transacted 49 properties with a combined value of $190 million.
Sydney Results
Turramurra NSW, Childcare - Sold - $8,000,000 (3.3% yield)
Umina Beach NSW, Childcare Affinity - Sold - $7,500,000 (2.99% yield)
Hammond Park WA, Childcare - Sold - $4,525,000 (4.98% yield)
Murwillumbah NSW, Childcare - Sold - $5,350,000 (4.92% yield)
Salamander Bay NSW, EG Fuelco Australia - Sold - $3,150,000 (3.49% yield)
Barton ACT, DOMA Head Office - Sold - $2,810,000 (5.32% yield)
Queanbeyan NSW, Australian Government & Medical - Sold - $4,250,000 (6.09% yield)
Broadmeadow NSW, Vet - Sold - $1,777,000 (4.13% yield)
Charlestown NSW, Office - Sold - $1,105,000 (4.89% yield)
Geraldton WA, Westpac - Sold - $3,410,000 (4.20% yield)
Pitt Town NSW, Childcare Affinity - Sold Prior
Kurri Kurri NSW, Shell Service Station - Sold prior
