Investors Out in Full Force at Portfolio Auction 164


October 2023
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Investors Out in Full Force at Portfolio Auction 164

Overall, Burgess Rawson's three-day Portfolio 164 Auction event saw a total of $63.218 million in transactions with a blended yield of 5.1% and an impressive success rate of 85.2%.

Ingrid Filmer, CEO of Burgess Rawson, highlighted the GSI (Government Social Infrastructure) assets' exceptional results.

“The surging demand for recession-proof GSI assets is driven by their 'sticky' tenant base, which ensures long-term tenancies. These government-backed entities provide essential services to communities, making their presence stable and their tenancies secure.

“GSI assets are part of the Australian government's substantial support system, with recent data highlighting the country's high per capita healthcare spending. These assets encompass facilities, services, and networks dedicated to improving the quality of life and well-being of the community, such as public health facilities, social service offices, childcare centres, and more.”

GSI was a shining star at the Melbourne event which was standing room only. The standout sale being a property at 555-557 Princes Highway in Narre Warren, fetching $3.03 million and reflecting a yield of 3.96%. 

Ambulance Victoria leases the asset at a net annual rental of $119,940.

In Horsham, an Amcal pharmacy at 96-98 Firebrace Street, in operation since the 1880s, was sold for $1.63 million, offering a yield of 5.87%. The same vendor also sold the adjoining Chickpea Café for $486,000, providing a solid return of 6.12%.

The Sydney leg of the event on day one was also highly successful with total transactions amounting to $29.388 million and an average yield of 5.14%. The clearance rate was a healthy 72.73%, with eight out of 11 properties sold during the event, and an additional property securing a buyer before the auction. Highlights include a GSI asset at 599-601 The Entrance Road, Bateau Bay, NSW, which transacted to $3.059 million providing a healthy return of 4.9%.

In Brisbane, two GSI assets were sold including a property leased to Royal Rehab Lifeworks which fetched $3.655 million on the day.

As part of the latest portfolio offerings, a securely leased GSI asset at 60-64 Wells Street in Frankston, Victoria, is available for sale via an Expressions of Interest campaign. This landmark asset not only signifies stability but also serves as a gateway to Frankston's transformative journey, appealing to a diverse range of investors.

The five-level freehold building offers a substantial NLA of 3,239 sqm and is leased at approximately $1 million per annum, making it a prime investment choice in the GSI market.

Mark Wizel of Advise Transact, along with the Burgess Rawson team and Gorman Allard Shelton, are facilitating this investment opportunity with the campaign closing on November 15.

Ms Filmer commented that the GSI asset in Frankston serves as a prime example of these characteristics, offering stability and acting as a gateway to the area's transformative journey.

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