Regional commercial real estate portfolio sold privately after auctions cancelled

The Berkeley Vale investment sold for $7.95 million.

Fifteen east coast commercial properties which were to have been offered at portfolio auctions that were cancelled this quarter because of COVID-19 restrictions, have found buyers following private sale campaigns.

Seven assets are rented to businesses considered essential services.

Three shops, two offices and two factories – all being outside of Victoria – are also tenanted to businesses which are still trading.

The Wangaratta childcare centre at 46 Collyn-Dale Drive is trading for $2.375 million.

The investments sold on yields between 5.2-8.4 per cent.

An industrial development site in Queensland’s Gladstone which fetched $1.5m formed the balance of the portfolio which has traded.

More fuel station deals

The priciest property was a service station in Berkeley Vale, between Gosford and Newcastle, on the New South Wales Central Coast.

Leased to Shell and Oporto until at least 2032, 1A Tumbi Creek Road traded for $7.95m – a 5.97pc yield.

On 3448 square metres, with 20 car parks, the site is opposite a retail strip occupied by Domino’s, KFC, Hungry Jack’s, McDonalds and Subway.

A Woolworths Petrol complex at 337 West Street, Umina Beach, about 16 kilometres south of Gosford, also sold: the $3.52m price representing the tightest yield of all assets within the portfolio.

A Queensland 7-Eleven outlet at 85 Perth St, Toowoomba exchanged for $4.25m on a 6.75pc yield.

A childcare centre at 5-31 Anakie Rd, Bell Post Hill, in inner north west Geelong, found favour for $5.3m, also reflecting a 6.75pc yield, while another, 46 Collyn-Dale Drive, in Wangaratta, also in Victoria, fetched $2.375m – a 6.45pc return (story continues below).

The balance of the portfolio

The only other properties to sell for more than $2m were both in New South Wales: a Dubbo bank at 125 Macquarie St and a Harvey Norman occupied bulky goods asset, 5-9 Saleyards Rd, Parkes.

The two cheapest assets were both Queensland offices: at 9/547 Woolcock St, Townsville, tenanted to the state government’s Sunwater (trading for $748,000), and another, rented to ASX-listed Veris, at 30 Chapman St, Prosperine ($716,000).

An Airlie Beach shop, 350 Shute Harbour Rd, occupied by Cotton On Group’s Factorie, also exchanged for nine figures ($930,000) – and on the portfolio’s highest yield.

Portfolio auctions to resume despite extended Victorian restrictions: Burgess Rawson

Burgess Rawson director Billy Holderhead said that despite the success of private sales – the agency will resume its portfolio event on September 23 which will be streamed and take telephone and online bidding.

The broker has upped the video content and number of images in its campaigns ahead of it.

“While we have enjoyed success outside of the auction process, feedback from the buyers has been that they prefer the transparency and spontaneity of a real-time auction,” the agent said.

“In terms the know exactly what they have to beat in order to secure the property” Mr Holderhead added of the transparent auction process.

“Buyers are keen and ready…so we have quickly adapted,” he said, saying 12 investments have been slated for sale.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco