Essential services, food and medical proved their popularity at Burgess Rawson’s Portfolio Auction 159 event in Melbourne, with a range of convenience stores and restaurants selling under the hammer, realising $27.857 million in transactions and a success rate of 81.25%.
The blended yield was 5.55%, which has been compressed since Auction 158.
Highlights included 7-Eleven in Hawthorn East, which sold for $6.7 million on a tight yield of just 3.94%. The sale follows the successful results in Sydney, where 7-Eleven in Jamisontown sold for $6.2 million, showing a yield of 4.99%.
International restaurants were hot, with Pettah Road Café selling for $2.35 million, reflecting a yield of 4.88%, while Namak Indian restaurant in Prahran sold under the hammer for $2.1 million on a yield of 5.38%. The confidence in food placed in quality locations is undeniable.
Appetite for regional properties remains unabated, with a medical centre in Wodonga selling for $4.605 million. Leongatha Nextra was strongly contested by eight registered bidders and 55 individual bids to reach $924,000 on a yield of 5.98%.
Burgess Rawson CEO, Ingrid Filmer, said the combined tally for Melbourne and Sydney’s portfolio auctions totalled $59 million, with the blended yield at 5.67%.
Ms Filmer said it was standing room only at the auction, which attracted spirited and multiple bidding throughout the day.
Ms Filmer further commented on the auction, stating “today’s results also show demand for essential services such as convenience retail, food and medical continued to whet investor appetite because they offer secure long-term leases and recession-proof".
Melbourne auction followed strong activity at the Sydney auction on Tuesday with Taylor Early Learning Centre in the ACT transacting for $5.52 million on a yield of 5.51%. Sydney’s top sale of the day was a group of four restaurants at Campbelltown selling for $9.15 million reflecting a yield of 6.22%.
The next portfolio auction will be held at the Hilton in Brisbane tomorrow, 30 March, at 10.30 am AEST.
Melbourne highlights
- Volume $27.857M
- Blended Yield 5,55%
- Lowest Yield 3.94% for 7-Eleven in Toorak Road, Hawthorn East.
Sydney highlights
- Volume $31,030,000
- Blended Yield 5.76%
- Lowest Yield 4.99% for Jamisontown 7-Eleven
