Burgess Rawson was excited to offer its largest ever portfolio of properties to the market at their 145th portfolio auction event.
Held across two days in auction rooms in Sydney, Melbourne and Brisbane, Burgess Rawson was proud to announce a success rate of 82%, which saw 40 properties sell for a combined value of $156.1 million.
In one of the final major commercial property auctions of the financial year, the event began in Sydney on Tuesday, June 22nd at the Sydney Opera House under Covid-Safe protocols. New South Wales utilised both online bidding and phone bidding for the very first time, which was very popular among buyers located at home, regional areas or interstate.
21 of the 25 properties sold under the hammer or by negotiation, leading to an impressive 81% clearance rate.
Having had a major spike in popularity since the global pandemic, Medical centres had received very pleasing results. Each generating more than 150 enquiries, the first four sales of the day were all medical centres situated in Liverpool, Gosford and Cooks Hill, all selling on yields of less than 5%. Having been known to offer cheap fuel, along with its strong 15 year lease, the Liberty service station in Tanawha (QLD) had casted an outstanding result, selling for $2.42 million and smashing the reserve by $270,000.
Commenting on the fantastic Medical Centre results, newly appointed National Director of Burgess Rawson Kieran Bourke said "the first four sales at the Sydney auction fetched exceptional results as we saw many residential buyers shift towards medical investments.”
Global fast food outlets had also recorded some tremendous results. Subway at Windsor (NSW) sold well above the reserve for $1,045,000 (4.47% yield). Whilst the KFC in Mudgee (NSW) also performed strongly, achieving a $3.7 million selling result (4.98% yield). However, the best performing sale of the day went to the KFC at Forster (NSW). Having generated over 350 enquires and recording more than 100 bids, the popular fast food joint had sold for $2.83 million (2.93% yield).
Less than 24 hours later the portfolio auction event continued in Melbourne on Wednesday, June 23rd at the Crown Casino, and in Brisbane at the Hilton Hotel.
A total of 24 properties out of 29 sold for a combined value of $122.3 million, achieving an overall success rate of 83%. Eleven cross-boarder transactions occurred throughout the day, highlighting the strong interest from interstate investors.
The day started off in fine fashion with fast food giant KFC in Berrinba (QLD) selling a whopping 29% above the reserve for $5.16 million, achieving a fantastic yield of 3.29%. The days momentum continued with the newly constructed Bunnings Warehouse in Plainland (QLD) selling 11% above the reserve for $22.2 million to a Melbourne investor. The sale is now the strongest Bunnings yield ever for a traditional land and buildings investment, which recorded a 4.21% yield. Amazingly, 13 investors placed bids on the Bunnings - all being first-time Bunnings investors. Both the buyer and underbidder were Melbourne based private families who were unable to inspect the property due of the interstate COVID border closures.
Childcare centres continued to sell. Having received another clean sweep, all six centres successfully sold well above the reserve for a combined value of $34 million. The most noteworthy childcare centre was the 'G8 Childcare Centre' in Ocean Grove, which sold for $3.3 million and achieved the sharpest yield for a regional Victorian Property being 4.39%.
Additional highlights included several properties recording sub 5% yields. These properties included a Metaflex investment at Naranga, which sold for $5,430,000 on a yield of 4.14%. Whilst the Carl’s Jnr in Rockhampton and Salvos at Berrinba both achieved yields of 4.49% and 4.70% respectively.
Following the recent announcement of the consolidation of the Melbourne, Sydney and Brisbane Burgess Rawson offices, expectations are high for the next Portfolio Auctions campaigns.
Congratulations to Burgess Rawson on another successful portfolio auction event!
(View all the results from Burgess Rawson Portfolio 145 below)
