Burgess Rawson portfolio auction event achieved $60.43 million

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Jun 27, 2024

Burgess Rawson portfolio auction event achieved $60.43 million

Burgess Rawson’s National Portfolio Auction Event 169 was a huge success said Burgess Rawson’s CEO, Ingrid Filmer, with a 77 per cent success rate and a total of $60.43 million in transactions.

Burgess Rawson

7-Eleven located in Melba, ACT sold
Burgess Rawson

Pascoe Vale in Melbourne’s north-east leased

Burgess Rawson’s National Portfolio Auction Event 169 was a huge success with a 77 per cent success rate and a total of $60.43 million in transactions.

The event concluded in Brisbane with properties in the sub-$2 million range, proving highly sought after across the board.

Burgess Rawson’s CEO, Ingrid Filmer said there is a much deeper pool of buyers for properties in good locations and with strong tenants locked in. Many of these investors pay with cash and are seeking a secure income stream rather than worry about interest rate settings

“For these assets, yields are still holding at under five per cent,” Ms Filmer said

An example was the 154 square metre company-owned Bakers Delight store in Rosanna in Victoria that the family-owned bakery business has operated for about 40 years. The property sold for $943,000 reflecting a yield of 3.91 per cent.

Equally sought after was a veterinary hospital in Pascoe Vale in Melbourne’s north-east leased to Vet Partners.

The 260 square metre clinic on a 994 square metre site generated 52 bids before selling for $1.705 million on a yield of 4.5 per cent.

Another Vet Partners hospital in nearby Moonee Ponds sold for $1.35 million on a 5.1 per cent yield,

Brisbane’s auction added over $8 million to the tally while Melbourne’s auction generated total sales of just under $25 million. Other properties to sell under the hammer included a Grill’d restaurant in Perth’s Subiaco ($1.847 million on a 5.6 per cent yield) and the electoral office of Victorian Energy Minister Lily D’Ambrosio in Mill Park in Melbourne’s north-east ($940,000 on a 6.6 per cent yield).

On Tuesday, Burgess Rawson Director of Childcare, Michael Vanstone achieved a standout result with the $7.78 million transaction of the Affinity Education Early Education Centre in Killara, NSW boasting a sharp yield of 4.14%.

Mr Vanstone noted the property attracted keen interest with five bidders on the day, including strong attention from both local and offshore private investors.

"We continue to witness robust demand for high-quality investment opportunities in prime locations such as Killara.

“The premium property ticked all the boxes with the result reflecting the strong competition and demand for these assets,” he said.

Yosh Mendis, Burgess Rawson National Partner, described the event as a packed house with stellar results, affirming the ongoing appeal of properties offering solid long-term tenant covenants and strategic locations.

The event recorded an average sales price of $3,915,714 and an average of 15 bids per asset.

In addition to the Affinity Education sale, notable transactions included a $5.8 million sale of a medical centre in East Maitland and a $2.57 million sale of a medical centre leased to Focus Radiology in Engadine, achieving a return of 4.98%.

The PFD Food Services industrial site in Kawana, QLD, was successfully sold for $4.9 million, while a 7-Eleven located in Melba, ACT, changed hands for $2.75 million.

"These assets continue to be sought-after by investors nationally this year, reflecting strong investor confidence in quality properties in prime locations," Mr Mendis concluded.