Burgess Rawson’s Sydney portfolio auction achieves 100% success rate. Among these was a 12,707sqm industrial asset in Hume, in the ACT, tenanted by Australia’s largest glass producer Viridian, which sold for $11.015 million on a yield of 5.47%.
The first day of Burgess Rawson’s national portfolio auction took place at the iconic Sydney Opera House today, where a 100% success rate, totalling $17,445,000 in commercial property sales, was achieved.
A buoyant crowd, together with online and telephone bidders nationwide, fiercely competed for a premium portfolio of commercial, industrial, medical, banking, IT services and fitness assets, with yields from 5% being achieved.
Among these was a 12,707sqm industrial asset in Hume, in the ACT, tenanted by Australia’s largest glass producer Viridian, which sold for $11.015 million on a yield of 5.47%.
Burgess Rawson Sydney Partner, Rhys Parker, said today’s auction demonstrated strong investor competition across all market segments.
“The 100% success rate is a signal that the appetite for high quality commercial investment properties continues to remain strong and good real estate, strategically marketed, are achieving excellent outcomes,” said Mr Parker.
“We saw strong investor competition across the properties in this campaign, with competitive bidding witnessed throughout the day.
“The industrial sector is highly regarded by private investors, property syndicates, and institutional investors and they are particularly focused on large land holdings, improved by functional buildings, in strategic commercial locations close to major arterials and complementary businesses.
“There is always strong competition on these types of properties when they come to market.”
Medical assets were another highlight, including a freehold medical investment in Coffs Harbour, on a long-term lease to Mid North Coast Cardiac Services, which sold after multiple bids for $2.05 million on a 5.37% yield.
Burgess Rawson Sydney Partner, Kieran Bourke, said freehold medical investments are attracting strong investor enquiry due to their defensive, stable and secure essential services income streams and their convenient, strategic locations.
“Demand in the medical sector is as strong as it’s ever been,” said Mr Bourke.
“Investors are looking for strong, passive investments which demonstrate secure long-term income streams and medical investments are great examples of this, with providers wedded to their location due to the long-term nature of their clients and the essential services they provide.
“The Cardiac Services investment in Coffs Harbour attracted 89 enquiries, 19 contract requests and eight registered bidders, showing just how strong the demand is in this sector.
“The asset has been leased to the current tenant for the past 20 years.”
Burgess Rawson’s second day of auctions will kick off at 10.30am tomorrow (Wednesday 26 October) at Crown Casino in Melbourne. Bidding is available via phone, online or in-person. Click here for further details.