Burgess Rawson from CBRE’s Melbourne portfolio event recorded strong results across diversified asset classes, with $21.4 million sold taking the total over two days to more than $72.875 million.
Burgess Rawson from CBRE’s Melbourne portfolio event recorded strong results across diversified asset classes, with $21.4 million sold taking the total over two days to more than $72.875 million.
The two day portfolio auction event recorded a success rate of 78.57 per cent and a blended yield of 5.8 per cent.
Burgess Rawson from CBRE Senior Director, Matthew Wright said these results demonstrate the intense investor confidence across multiple defensive markets, with strong appetite for quality commercial assets that offer defensive characteristics and long-term income security.
“The depth of bidding we’re seeing reflects a market that recognises value in well-located, covenant-backed properties delivering solid returns,’ he said.
Highlights of the Melbourne event include the $3.745 million sale of a United Petroleum asset in Shearwater, Tasmania achieving a 5.28 per cent return – the sharpest yield for a petrol station in Tasmania since 2016.
Properties in Victoria include an Elders in Yea which realised a price of $1.761 million while Cheap as Chips in Echuca sold for $4.7 million. In Port Augusta, South Australia, the Pets Domain sold for $1.54 million.
A handful of properties sold prior to auction including a Viva Energy convenience outlet in Newborough, and a series of supported living assets in Mornington and Bundoora along with a café, restaurant and an Avonsleigh veterinary clinic.
The result followed the success of the Sydney portfolio auction event delivered another standout result with more than $51.475 million in transactions across healthcare, childcare, convenience retail and fast food retail assets.
The Sydney event garnered a stellar success rate of 91.67 per cent, with yields as sharps as 3.79 per cent demonstrating strong private investor appetite across the asset classes. The blended yield was 5.37 per cent.
Burgess Rawson from CBRE Senior Director Yosh Mendis said the results demonstrated the exceptional strength in the commercial property sector with healthcare and early education in particular gaining significant momentum as investors aggressively pursue defensive, essential-service infrastructure with rock-solid covenants and robust income streams.
The three Goodstart Early Learning assets achieved the sharpest yields of the auction. First out of the gates was the Goodstart centre in Ormeau, Queensland, which sold for $3.92 million on a tight return of 3.79 per cent. The Albany Creek facility sold for $5.735 million reflecting a 4.19 per cent yield, while the Mornington (QLD) centre transacted for $2.375 million.
Healthcare proved a strong remedy for investors with three PRP Diagnostic Imaging assets selling. The flagship Hornsby investment was snapped up for $9.5 million on a 5.44 per cent yield, representing the highest sale price of the day. Additionally, PRP Adamstown in Newcastle saw spirited bidding selling for $5.85 million reflecting a yield 5.21% as well as PRP Erina selling for $3.225 million on the day. The properties were listed and sold through Yosh Mendis and Geoff Sinclair.
The event continues at The Westin in Brisbane tomorrow, Thursday 23rd October commencing 10.30 AEST.