The largest commercial portfolio auction to ever hit the Australian market will take place next month, when Burgess Rawson sends 61 properties, with a combined value of $260 million, under the hammer.
The auction event will be held over three days to accommodate the huge number of properties to be sold.
Burgess Rawson’s National Head of Agency, Adam Thomas, said the size of the portfolio reflects the increased investor appetite for commercial assets, as investors redirect funds from the overheated residential sector.
“In our 46 years of operation, Burgess Rawson has never presented a portfolio auction of this magnitude,” Mr Thomas said. “Investors who typically would have channeled their funds into the share market or residential sector are seeing greater stability, and sustainable levels of growth, in commercial assets.
“This of course is a direct result of Australia’s strong economic performance through the pandemic and the recognition that commercial investment properties leased to essential service tenants operate in a class of their own.
“Commercial property owners are responding accordingly, bringing select opportunities to market at a time in the cycle when they will be able to maximise their return on investment.”
Since January, Burgess Rawson has achieved more than $750 million in commercial asset sales. More than 30,000 investors are expected to tune in for the action across the three-day super event.
Twenty-three properties located across Victoria, Tasmania and South Australia will be the first to go to auction in Melbourne on 28 September. South Australia’s Channel 7 studio in Hindmarsh is expected to attract significant interest, as is the Coates Hire facility in Albert Park.
Jamie Perlinger, Head of Agency VIC, said essential service assets including childcare centres, fuel, automotive, retail and medical offices continue to dominate.
“Once again we are seeing a high quality, essential service portfolio across a range of price points,” Mr Perlinger said. “Essential service assets remain investor favourites, demonstrating an ability to trade strongly throughout the pandemic.”
In a first for the group, Queensland will host an auction of 20 assets on the second day of the event series.
Joint Heads of Agency QLD, Campbell Bowers and Andrew Havig, said the portfolio includes a selection of established childcare centres in Brisbane and the Gold Coast, regional shopping centres, food retail, vet surgeries and service stations.
“The extraordinary confidence of the Queensland market is not exclusive to the south-east corner,” Mr Bowers said. “The ability of regional cities to operate with minimal disruption during the past 18 months offers significant stability, attracting levels of investor appetite usually reserved for CBD markets.”
In Sydney, 20 assets from across regional New South Wales, Australian Capital Territory and Western Australia will go under the hammer on the final day of auctions.
Darren Beehag, Head of Agency NSW, said the portfolio includes a selection of blue-chip assets including the DOMA Head Office in Canberra, and the Centrelink in Busselton (WA), alongside a selection of childcare and fuel property.
“Childcare and fuel were standout performers at our most recent auction event and we expect this trend to continue in September,” Mr Beehag said.
“The market is not slowing despite community lockdowns. The confidence in assets of this calibre means that the bulk of these will be purchased sight-unseen.
“The easy bidding platform, asset quality and demand has resulted in 58% of property sold by Burgess Rawson since March last year purchased sight-unseen.”
Burgess Rawson is the largest Australian owned commercial agency in Australia and the most active agent throughout the pandemic, selling 401 properties since the World Health Organisation declared the COVID-19 pandemic on 11 March 2020.
The group’s most recent portfolio auction earlier this month achieved an 87% clearance rate, selling 40 properties for a combined value of $120 million.
The September three-day auction event will commence at 11.00am daily and will be hosted in Melbourne on Tuesday 28 September, Brisbane on Wednesday 29 September and Sydney on Thursday 30 September 2021.
All auctions will be held remotely, pending changes to lockdown restrictions in Victoria and New South Wales. Bidding will be available online, via phone or in-person at offices not impacted by COVID restrictions.
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