CBRE will hold its first Premium Property Portfolio Auction event of 2019 on Thursday, March 28, offering a range of properties from private developers and investors.

The PPPA event will include eight premium-grade properties, including a freestanding IGA supermarket in Melbourne’s north-eastern suburb of Ringwood East.

The property, located on a 2,153sqm site and anchored by a 10-year lease to Pauls SUPA IGA, has been owned by the Corcoris family for more than 40 years. 

Other properties to be auctioned include:

• A Woolworths petrol station in Maddington, Western Australia.
• Two 7-Eleven properties in Werribee, Victoria and Windaroo, Queensland. 
• A Riots Arts & Crafts store in Camberwell Junction, Victoria.
• A brand new childcare centre in Blackburn, Victoria.
• A Shell Coles Express in Wollert on behalf of Melbourne-based developer Oreana Property Group.

The eighth property is a freestanding building leased to Centrelink in the centre of Parkes, NSW - a town benefitting from significant state and federal government investment off the back of a new national logistics hub.

CBRE’s National Director of Retail Investments, Mark Wizel, said the quality of vendors offering their properties through the PPPA event was a vote of confidence for the sales platform. 

“Our team remains focused on only offering a select group of premium investment properties with long leases," he said.

"We are pleased to present eight properties all leased to national tenants with a portfolio WALE of 10.7 in our eighth PPPA event,” Mr Wizel said.

The upcoming PPPA follows a successful 2018 for the auction sale platform, which generated $160 million worth of commercial sales and a 95% clearance rate across four auctions. 

The PPPA platform commenced in August, 2017, during which time the platform has transacted 37 properties at an average clearance rate of 88% and an average price point of almost $10,000,000.

The 7 Eleven in Werribee. Source: CBRE 

CBRE’s Joseph Du Rieu said the sale of two freestanding 7-Eleven service stations in North Melbourne (4.5% yield) and Kallangur, Queensland (5.8%) at the final PPPA of 2018 demonstrated the ongoing strength and appeal of the retail investment market. 

“The current strength of interest and demand highlights the investment appetite for quality properties," he said.

"Interestingly, the 10-year bond rate has compressed by 50 basis points over the past six months, which has historically been a leading indicator for investors to exit cash and enter higher yielding commercial property investments.”
 
The first PPPA event of 2019 will take place on March 28 at the Zagame Ferrari headquarters at 430 Swan Street, Richmond, Victoria. 

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