In light of the greatly successful Auction Portfolio event in Sydney last week, all attention turned to the Melbourne as Burgess Rawson Portfolio 146 continued.
28 properties were placed up for sale within the portfolio with national tenants such as Hungry Jack’s, ANZ, Australia Post, Jaycar, United and Shell Petrol.
As a result of Melbourne plunging into a 6th lockdown, the auction was held remotely with bidding available via phone and online, as well as in-person at interstate locations, including the Hilton in Brisbane.
Amazingly, Burgess Rawson achieved an 82% success rate, as 23 properties found new owners, reaching a combined value of $76,516,000. Such impressive results led to a total of 12% above reserve (or $7.9M), with data revealing that demand is outstripping supply 12:1.
Prior to the event getting underway, five properties had sold prior, suggesting that the lockdown around the nation did not deter investors' appetite to snap up the quality investments that were on offer.
This investor hunger continued during the event as a record number of 300 registered bidders across Australia placed bids on the prized commercial assets. A total of 738 bids were made across the day, emphasising the strong investor interest.
The assets that sold prior to auction included:
- A Japanese restaurant in Battery Point, Tasmania
- An auto repair in Wangara, Western Australia
- A Government asset in Mt Isa, Queensland
- An office asset in Mt Louisa, Townsville
- An industrial asset in Glenorchy, Tasmania.
A notable highlight on the day was the sale of a Bridgestone in Flagstone, Queensland. The asset achieved a new record yield for Bridgestone investments in the sunshine state, selling for $2,650,000 and achieving a yield of 3.77%. Three Bridgestone properties have sold over the past 18 months with the previous record at 4.25%.
An ALH hotel at Toowong in Queensland (The Royal Exchange Hotel) ended up selling for $14,050,000 on a yield of 4.01%, achieving a record yield for ALH investments. Retail fuel continues to have wide appeal with three Shell/Viva Energy investments in South Australia and Tasmania; and two United assets in Victoria also achieving successful results above the reserve.
Commenting on the fantastic results throughout the day, Burgess Rawson National Director Raoul Holderhead said "Big name tenants dominated, and bidding was highly competitive,”
“A clear example was the Hungry Jack’s at Campbellfield in Melbourne selling for $6.4 million, achieving a yield of 3.37%. Amazing.”
See the results from Burgess Rawson Portfolio 146 below.
