Burgess Rawson has exclusively listed a portfolio of PETstock assets for sale, presenting a unique opportunity for investors in Australia’s thriving pet care sector. 

Partner Darren Beehag noted the sector’s rising appeal, reinforced by Woolworths' recent majority  share acquisition of PETstock, Australia’s second-largest pet retailer. With 276 stores and annual  revenue of approximately $208 million, PETstock joins a growing list of high-performing brands in the  market. 

The portfolio features a standout asset in Prahran, one of Melbourne’s most affluent inner-city suburbs,  just seven kilometres from the CBD. The premium property occupies a 1,206 square metre corner site  with 98 metres of triple street frontage. Zoned Commercial 1, the site offers multi-storey development  potential, complemented by a lease with provisions for early termination at the landlord’s discretion.  

Currently, the Prahran property generates a robust net income of $217,350 per annum, with rental  growth potential of up to 12 per cent annually—making it an exceptional option for investors seeking  both immediate and long-term returns. 

The portfolio includes four regional PETstock properties in Gordonvale (QLD), Barham (NSW), Leeton  (NSW), and Cohuna (VIC). Each asset is leased to PETstock under long-term, 15-year agreements with 3% annual rent increases, ensuring stable income growth 

Mr Beehag said these regional assets are located in growing towns, offering excellent potential for  capital appreciation alongside steady income. 

“Their affordability and reliable tenant profile make them particularly appealing to a range of investors. Some of these properties are also on large landholdings, for example Cohuna which comprises a  massive 10,593sqm approx. site.” 

Recent Burgess Rawson research further highlights the sector’s strength. Over the past two years,  transaction prices have ranged from $730,000 to $5.85 million, with an average sale price of $2.3  million, providing options for diverse investment strategies. 

Mr Beehag added that tightening yields in 2024 have underscored the sector’s investment potential.  

“Yields for veterinary clinics and similar assets have compressed to 5.94 per cent, down from 6.31 per  cent in 2023, reflecting growing investor confidence and the sector’s stable performance.” At these  yields, given the sector’s minimal risk profile and future strong growth prospects, these yields still  represent exceptional value for the astute investor.” 

Burgess Rawson’s previous portfolio auction demonstrated robust demand, achieving over $112 million  in sales nationwide. The three-day event recorded a blended yield of 4.88 per cent and an average  sale price of $3.617 million, showcasing the strength of essential asset classes like convenience retail,  early education, and medical properties. 

The Prahran property will be offered at the Burgess Rawson Melbourne event at Crown Casino on  Wednesday 11 December at 10.30am AEDT. The other assets will be auctioned at Burgess Rawson’s  Sydney event at the Opera House on Tuesday 10 December, at 10.30am AEDT. 

More Burgess Rawson readings 

Investing in Australia’s Pet Industry: A growing market for commercial property - Burgess Rawson | Commo.

Day one of Burgess Rawon's investment portfolio auction event reaps $25.17m | Commo.

$64.5. Million sold on day two of Burgess Rawson investment auction event | Commo.