The buzz surrounding Burgess Rawson's Portfolio Auction 167 was undeniable, with investors flocking to seize lucrative opportunities in the dynamic commercial property sector.

Transactions over the three-day event totalled an impressive sum of almost $103 million, highlighting the event’s magnetism for investors diversifying their portfolios. The event recorded a strong success rate of 75 per cent.

The highlight at the well-attended Melbourne event was the $24 million sale of the health asset in Bridge Road, Richmond, reflecting a yield of 6.34 per cent.

Sold on a 20-year lease to 2035 plus options to 2060, the three level 1,227 square metre medical facility benefits from a major capital-intensive fit-out and a solid net annual income of $1,520,890.

Burgess Rawson National Partner, Yosh Mendis said the transaction showcased the enduring appeal of prime commercial real estate in coveted locations and underscored investor confidence in its long-term potential.

At a vastly different price point, a first-time commercial investor snapped up the premises of the Clean Streak Laundry – part of a successful chain of six outlets – in Berwick, an outer south-east Melbourne suburb for $835,000 on a yield of 5.1 per cent.

It’s the second laundromat Burgess Rawson has sold at auction in just over six months.

Burgess Rawson CEO Ingrid Filmer attributed the demand for laundromats and other smaller retail assets to the “mass exodus” of investors out of residential, but who still want to be in property.

In Sydney, Mr Mendis sold the McDonald’s in Pendlebury Road, Cardiff on a tight yield of just 3.25 per cent.

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 among the most sought-after assets to buy.

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.

In Brisbane, the Everton Park asset leased to Vet Partners sold for $1.805 million reflecting a yield of 4.7 per cent.

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