Burgess Rawson’s second auction event for 2024 kicked off with the McDonald’s at 43 Pendlebury Road, Cardiff selling on a tight yield of just 3.25 per cent.

Burgess Rawson National Partner, Yosh Mendis said the drive thru outlet was leased on a brand new 20 year ground lease to December 2043 plus options to 2073.

Mr Mendis said it was a sensational result with fast food investments proving once again they are among the most sought-after asset classes.

Elsewhere on the day, the JAX Tyres & Auto at 77 Bentinck Street, Bathurst sold for $2.65 million reflecting a yield of 5.66 per cent.

Mr Mendis said the investment highlights include a new seven-year lease to 2031 plus options to 2041 and fixed 3.5% compounding annual increases ensuring guaranteed rental growth.

JAX Tyres & Auto is a wholly owned entity of Hankook Tire (KRX Listed) market cap of over $7.68 billion.

A total of $20.25 million was sold on the day, achieving a blended yield of 5.25 per cent.

The campaign heads to Crown Casino in Melbourne tomorrow commencing 10.30 am.

Mr Mendis said investors will be presented with a compelling opportunity to tap into the thriving healthcare sector, with a number of properties offering unique advantages.

The event includes three significant properties primarily leased to successful operator, Lumus Imaging, a respected national subsidiary of Healius Ltd.

The presence of Lumus Imaging as a tenant underscores the stability and reliability of this investment opportunity, ensuring investors of sustained returns and long-term viability.

The assets on offer will appeal to seasoned investors with rents ranging from $375,990 to $1,476,502 coupled with favourable annual rent reviews fixed at 3.0%.

In South Australia, the asset at 1 Addison Road, Pennington offers the benefit from not having to pay stamp duty tax, further enhancing the attractiveness of the property.

In Victoria, the portfolio includes two properties situated in the densely populated Bridge Road, Richmond precinct. These assets are strategically positioned in one of Melbourne's most coveted health precincts and are also leased to Lumus Imaging.

Burgess Rawson’s first campaign for 2024 saw more than $70 million in transactions as investors jostled for premium assets with health dominating the program.

Related Reading:

Burgess Rawson first 2024 Auction Event records $66.79 m  | Commo.

Burgess Rawson launches its second major commercial property portfolio event for 2024 | Commo.

Why Investing in Australia's convenience retail sector is proving lucrative - Burgess Rawson | Commo.