Despite a slightly lower than normal clearance rate Wednesday's Burgess Rawson Portfolio auction at Melbourne's Crown Casino produced a number of strong results.
The highest price paid was $5.85 million for a Mitre 10 in Roma in regional Queensland, and a childcare centre in Adelaide which achieved $4.32 million on a 6.4 per cent yield.
A spokeswoman for Burgess Rawson said the results, "again demonstrates investors' ongoing preference for securely leased assets, including childcare centres, service stations, supermarkets and government-tenanted properties".
"We were really pleased with the result of the Woolworths service station in Morwell [in Victoria], which had been on the market with other agents for some time," the spokeswoman said.
"Through a comprehensive marketing program, Burgess Rawson produced just under 100 inquiries, resulting in multiple parties bidding, including one registered phone bidder in Saudi Arabia.”
"Positioned immediately next door to a competing BP Service Station, we consider the $1.18 million on a yield of 5.1 per cent to be considerable given uncertainty with regard to the new impending partnership between Woolworths and BP Petroleum," the spokeswoman added.
Other sales on the day included: the Colac CFA premises, which was purchased for $1.13 million on a yield of 6 per cent, $130,000 over the reserve price; a PharmaSave pharmacy in Deer Park in Melbourne's western growth corridor sold to Chinese investors for $1.36 million; and a Metcash backed Ritchies IGA supermarket in Ararat, which achieved a price of $3 million, representing a yield of 6.6 per cent.
High profile properties to be passed in on the day included an IGA supermarket in Port Melbourne, which was passed in for $6 million on a yield of less than 4 per cent and a United petrol station for $6 million on a 6.3 per cent yield, backed by a 15-year lease to United Petroleum.
Meanwhile, results were stronger in Burgess Rawson's Sydney auction on Tuesday, with 18 out of 27 properties selling under the hammer of auctioneer David Scholes and one selling prior to auction, at a clearance rate of 70 per cent.
Over 70 people attended the auction of 813 Burke Road, Camberwell where 4 bidders competed for the Athlete’s Foot in the popular street, which saw it reach $3,335,000 on a 4% yield.
Local and offshore Investors were attracted to the international footwear brand, a subsidiary of a publicly listed company RCG, which has enjoyed a 20 year presence in the strip and has recently extended its 5 year lease with option.
Gorman Kelly Sales and Leasing Director, Mario Nobrega said the sale represented a strong rate of $21,516 per sqm.
“The property proved irresistible to a number of buyers, resulting in the auctioneer taking over 50 bids to separate them,” Mr Nobrega said.
“The property which has been held by the same family since the 1930’s, was sold to a local Accountant/investor who is thrilled to own a piece of Camberwell.”