Burgess Rawson’s Portfolio Auction 163 achieved $52 million in transactions across the three-day event, with the average yield remaining stable at 5.49%.
In Melbourne, fast food was on the menu, with an investor snapping up two Red Rooster assets. The outlet in Altona Meadows transacted for $2.962 million, providing a return of 4.46%, while the Hastings outlet sold for $2.35 million, reflecting a yield of 4.72%.
Burgess Rawson CEO, Ingrid Filmer, said the results show investors continue to seek out strong-performing defensive assets that deliver solid future growth and upside.
“Over the past 18 months, we’ve seen yields for Red Rooster assets firm by 90 basis points to average 4.6%."
“Investors see the strength of the Red Rooster brand which has established a niche market attracting a strong cult following. Differentiating itself from other fast food operators, Red Rooster focuses on providing healthy products aimed at families and traditional Sunday roast dinners.”
The highest sale recorded in Melbourne was $8.91 million for an asset at 446 Maroondah Highway, Lilydale.
Burgess Rawson Partner Matthew Wright said the property was an outstanding investment underpinned by a substantial 6,200 square metre site and its lease to Belgravia Group trading as Genesis Health and Fitness.
“The significant site size and being one of Genesis’ best-performing businesses in the country attracted five registered bidders,” he said.
Entry-level buyers were also out in full force, with a Curry Twist outlet in Clyde North selling for $686,000, while Tikka Twist in Cobblebank transacted for $1.017 million.
At the Sydney event, three childcare assets were sold with the Goodstart Early Learning Centre in Blue Haven selling for $3.18 million showing a tight return of 4.51%.
Automotive was a hot property in Queensland with two assets in Roma selling. A quality asset at 53 Soutter Street leased to Toowoomba-based RTS (Roma Trust Spares) and Pengelly Trucks and Trailers, who recently expanded into the area, sold for $1.555 million. A property at 109 Raglan Street occupied by Enzed sold for $1.84 million.
Queensland investments were highly contested due to the strong economic and population growth of the state.
Ms. Filmer said we’re seeing an influx of buyers who continue to abandon the residential investment market for the security of recession-proof commercial assets, which generate much higher returns and offer secure, long-term leases.
