Burgess Rawson three-day Auction Event attracted 181 registered bidders $87 million in sales

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May 16, 2024

Burgess Rawson three-day Auction Event attracted 181 registered bidders $87 million in sales

Burgess Rawson’s Portfolio Auction 168 was a phenomenal success amassing more than $87 million over the three-day event and a stellar 91 per cent success rate and a blended yield of 5.52 per cent says Burgess Rawson CEO Ingrid Filmer.

Burgess Rawson’s Portfolio Auction 168 was a phenomenal success amassing more than $81.01 million over the three-day event
$7.5 million transaction of the Toyota Dealership in Best Street, Devonport

Burgess Rawson’s Portfolio Auction 168 was a phenomenal success amassing $87 million over the three-day event and a stellar 91 per cent success rate.

Investors feasted on fast food and childcare with the highlight being the $4.37 million sale of a McDonald’s asset in North Rothbury, NSW reflecting a sharp yield of 2.97%. This low yield is 138 basis points below the official RBA cash rate showcasing the incredible demand for McDonald’s lease covenants.

Burgess Rawson CEO, Ingrid Filmer said McDonald’s investments offered bond-like surety and it was likely the purchasers were cash buyers – a feature of many retail property sales negotiated below the cash rate by the commercial real estate firm.

Burgess Rawson National Partner, Yosh Mendis said the outstanding results highlight the insatiable demand for fast food, convenience retail and early education assets.

Fast food and early education were highly contested at all three events. The KFC in Ayr received 66 bids before selling for $3.105 million and achieving a tight yield of 4.75 per cent.

The Chatterbox Early Learning Centre at 23 Tillot Street, Dutton Park sold for $5.38 million reflecting a firm yield of 4.84 per cent.

Burgess Rawson Partner Andrew Havig said it was the sharpest yield achieved for a Queensland childcare centre above $5 million, in the last 12 months.

In Caboolture, a property leased to EG Group and Oporto sold for $7.985 million while the Goodstart Early Learning Centre in Mount Hutton transacted on a yield of 4.67 per cent.

Several fast food assets were snapped up including a KFC in Wonthaggi, Victoria which sold for $3.205 million providing an annual return of 3.92 per cent. Elsewhere, the Hungry Jack’s in Westbourne Park, SA sold for $5.21 million on a yield of 4.34 per cent, the Red Rooster in Mount Gambier sold on a 4.71 per cent yield and Carl’s Jr in Caboolture, QLD sold for $5.105 million.

Health was also strong with the NRMA asset in Bowral selling for $1.13 million showing a 5.7 per cent yield while a medical centre in Wetherill Park sold for $1.7 million showing a yield of 5.02 per cent.

A strong result was achieved in Melbourne on Tuesday with the $7.5 million transaction of the Toyota Dealership in Best Street, Devonport which achieved a yield of 5.99 per cent.

The dealership has been in the Gowans family since 1969 and was fully redeveloped in 2009 to take advantage of the coveted city views.

The latest campaign builds on Burgess Rawson’s successful track record, with close to $300 million in transactions to date, driven by strong investor demand.

The three-day event attracted 181 registered bidders and a blended yield of 5.52 per cent.