Commercial Auction

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Two childcare centres were much sought after at Burgess Rawson's 100th portfolio auction in Melbourne.
The one in Hampton sold for $3.95 million and the other in Heatherton for $3.2 million.
“Both childcare centres attracted strong and competitive bidding with both Hampton and Heatherton selling on circa 5.6% yields," selling agent Adam Thomas said.
"These investments continue to be highly sought after due to the long secure leases to national tenants and are underpinned by the high underling land value coupled with the inherent value of the business.” 
The 461-463 Bluff Road, Hampton site (above) is leased for 15 years to Only About Children (OAC) till 2030, with three 10-year options.
OAC is a high-end childcare provider with 31 locations across Melbourne and Sydney's affluent suburbs, including Armadale, Camberwell, Coogee, Cremorne, Mosman, Neutral Bay and Rose Bay.
The rent is $224,985 per annum and there is a fixed annual 3% rent increase.
The tenant pays all usual outgoings.
The main road site is spread over 1,149 square metres with a 34-metre frontage and is licensed for 56 long day care (LDC) places.
The location is just 14 km from the Melbourne CBD and minutes to Beach Road and the Nepean Hwy.
It was extensively redeveloped in 2015, providing for income tax saving depreciation.
The Heatherton property sits at 16-20 Arco Lane and is leased to G8 Education Limited.
It is a new 10-year lease to 2025 with two further five-year options to 2035.
ASX-listed G8 Education is a childcare provider with 450+ centres across Australia.
The facility is built on 595 square metres and is licensed for 90 LDC places.
The land area is a 2,232 square metre commercial zoned site with 16 car spaces.
The rent is $180,000 per annum and the tenant pays all outgoings including land tax.
Beginning in 1975, Burgess Rawson established a nationwide network of offices and is Australia's largest locally owned and operated commercial property agency, marketing more than 10,000 properties and generating sales in excess of $25 billion over the past 40 years. For more information, <a href="https://www.burgessrawson.com.au/portfolio-auctions" target="_blank">click here</a>.
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Two childcare centres see strong bidding at Burgess Rawson auction 

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Three service stations in the NSW localities of Gundagai, Wyong and Salt Ash went under the hammer at Burgess Rawson's 100th portfolio auction. 
The one at 11 Dog on the Tucker Box Road (Hume Highway) Gundagai (above) , anchored by Shell-Coles Express, fetched $7.71 million.
The 14.94 hectare site with a major truckstop facility comes with an abundance of customer parking and bus/truck access.
A KFC, Subway, a 24-hour diner and cafe make up the rest of the property.
It earns a net $646,095 pa, with the Shell-Coles station making up nearly 48% of it.
At the winning bid, the yield works out to about 8.3%.
The selling agent was Rhys Parker.
The Salt Ash centre at 2893 Nelson Bay Road is leased out to the ASX-listed Caltex and fetched $4.7 million at the auction. 
Built in 2012/2013, it is currently on a 10-year lease to 2024, with options until 2039.
The site is spread over 2,164 square metres. 
The estimated net income is $275,858 pa + GST (Sept 2015), translating to a yield of about 5.9%.
The location is on the main road and has a traffic volume of 22,800 cars per day.
The Wyong station at 140 Pacific Highway fetched $1.25 million.
It is leased out to Westside Petrol for a 10-year period to 2025 with 3 x 10 year options.
The service station is a single tenant investment and earns a net estimated $87,964 annually, giving a yield of about 7%. 
There is a fixed 3% rental increase.
The tenant pays the outgoings (excluding land tax).
Wyong has a population of 154,976 people, which is expected to rise to 220,000 by 2031 and is less than 90 minutes from Sydney.
Both the Wyong and Salt Ash properties were sold by Rhys Parker and Darren Beehag. 
Commercial properties such as service stations are a big draw with investors because of a number of factors. The initial investment in a commercial property may be higher, but so are the returns, according to a blog on Burgess Rawson's website.
Also, major players as tenants means they take care of the outgoing payments, against residential property where the costs are borne by the landlord.
Beginning in 1975, Burgess Rawson established a nationwide network of offices and is Australia's largest locally owned and operated commercial property agency, marketing more than 10,000 properties and generating sales in excess of $25 billion over the past 40 years. For more information, <a href="https://www.burgessrawson.com.au/portfolio-auctions" target="_blank">click here</a>.
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Three service stations auctioned at yields between 6% and 8%

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The final Sydney Burgess Rawson portfolio auction of the year raked in nearly $65 million in sales with an 80% clearance rate.
All eight commercial buildings put up for sale by the <a href="/expert-insights/investing/48645-nsw-government-selling-eight-properties-through-burgess-rawson-auction" target="_blank">NSW state government</a> were sold, indicating investor confidence in the NSW economy. 
The sale of these properties, all in regional centres outside of Sydney and leased to tenants such as Services NSW and Roads and Maritime Services offering five-year leases with fixed annual rent increases of 3%, will boost the state's coffers by almost $17 million.
The properties were at Bathurst (Robin Hill), Cessnock, Deniliquin, Grafton, Mittagong (Welby), Penrith, Unanderra (Wollongong) and Tweed Heads.
Net incomes were in the range of $23,445 per annum to $335,760 per annum, with the yields ranging from 4.3% for a Motor Registry office in Mittagong in the Southern Highlands, which fetched $1.88 million, to 6.7% for a Motor Registry office in Wollongong, which sold for $3.34 million.
A Sydney buyer paid $5.71 million for a Motor Registry office in Penrith, translating to a yield of 5.9%. 
In all, 20 out 25 properties up for auction were sold under the Burgess Rawson hammer.
The highest price of $8.1 million was a retail property in Armidale in the NSW Northern Tablelands, which has a Woolworths-owned Dan Murphy's liquor store and a Dick Smith electronics outlet. The yield works out at 6.9%.
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All 8 NSW government properties sold at Burgess Rawson auction

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Playfair House at 2 Ridge Street, North Sydney passed in on a bid of $2.85 million when auctioned last Saturday.
It is an <a href="https://www.domain.com.au/2-ridge-street-north-sydney-nsw-2060-2012339885" target="_blank">1885 five-bedroom Victorian terrace</a> Playfair House which came with $3 million hopes.
Listing agent Jennifer Hampton, had issued 10 contracts on the commercial-residential zoned property.
It is currently leased as a commercial property until January 2016.
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Playfair House, North Sydney offering passed in

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A childcare centre in Littlehampton in Adelaide Hills leased to ASX-listed G8 Education is up for sale at a Burgess Rawson portfolio auction in Melbourne on April 6.
The <a href="https://www.burgessrawson.com.au/buying/SA/Adelaide-Hills/Littlehampton/MedicalorConsulting/3P1257#.VvCcP2R96u5" target="_blank">1 Rosella Court</a> centre is on a 1.36 ha site with future redevelopment potential subject to council regulations.
The centre is on secure 10-year lease to G8 Education plus options through to 2040. G8 has more than 450 centres nationally.
The rent is $237,405 pa and there is a fixed 4 percent pa rent increase with the tenant paying all the usual outgoings.
The property has dual childcare facilities with main building licensed for 125 places and includes G8's state training/conference HQ, plus purpose built pre-school facility licensed for 45 places (completed 2014).
Littlehampton is a suburb of the Mount Barker District, with its population forecast to grow 58 percent by 2036 and located 30 km east from the Adelaide CBD.
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Childcare centre in SA's Littlehampton up for sale at Burgess Rawson auction

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A Surfers Paradise site leased to global restaurant chain Hooters is up for sale via auction on May 5.
The property at Lot 11 2893-2903 Gold Coast Highway has a lettable area of about 424 sqm and includes alfresco plus two storage areas and a back loading bay.
It is being marketed by Steven King of Ray White Commercial Gold Coast.
King said the offering is underpinned by a secure lease to Hooters.
“Nasdaq-listed Hooters is a public company and the owner operator of 61 restaurant brands in the United States and abroad and owner franchiser of the Hooters brand,” he said.
Hooters has a 10-year lease with the tenancy commencing in December 2013, with two further options of five years each.
The property generates net rental income of about $156,825 per annum with four percent annual increases on gross income.
 
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Hooters Surfers site for sale at May auction

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The site of popular watering hole, the Evening Star Hotel in Sydney's Surry Hills, will go up for auction on May 3.
The pub, which tapped its first keg in 1873, is located at <a href="https://www.gunningre.com.au/1P3893" target="_blank">360 Elizabeth Street</a>.
It is pictured before the apartments went up above it around 2006 and below after renovations.
<img src="/images/2016/04/11/lt-1-1P3893-145679489287956429-rsd.jpg" alt="" width="614" height="409">
The listing agent is Daniel Gunning of Gunning Real Estate. 
“It is a secure and well leased investment,” Gunning said. “The redevelopment of the hotel in 2006 consisted of retaining its façade and the floor space being reduced to a single storey premises as it is today, the rest of the land was developed into a high-rise residential building known as Icon."
<img src="/images/2016/04/11/lt-1-1P3893-145679491315796114-rsd.jpg" alt="" width="669" height="446">
Tenant, the Marvan Hotel group, has recently signed a new seven-year lease with a further five-year option.
“The Marvan Hotel group has also committed to a major renovation of which will capitalise on its positioning close to China Town and Haymarket. The focus will be on gaming and TAB facilities," he said.
<img src="/images/2016/04/11/lt-1-1P3893-145679494002630847-rsd.jpg" alt="" width="659" height="439">
Marvan Hotel group also operates other hotels, including the Sea Breeze, Nelson bay; Lidcombe Hotel, Lidcombe; The Flynn, Sydney; The Bald Face Stag, Leichhardt; The Westmead Tavern, Westmead and The Merrylands tavern, Merrylands.
“Outside of the lockout law precinct, 360 Elizabeth Street represents good value for future leasing opportunities and with the tram coming through in the area in 2017/2018, we believe demand will be high for this property.
He added that the property has the potential to be subdivided into multiple smaller retail shops or remain “as is” in-one-line.
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Evening Star pub in Sydney's Surry Hills up for auction 

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Melbourne’s Metropolitan Hotel has exchanged hands, snapped up by a local investor for $8.61 million at auction and adding to a flurry of deals this month totalling more than $15 million.
The iconic corner street pub at 263-265 William Street has a history spanning 160 years.
The sale reflected a yield of 2.38 percent - the strongest ever for a Melbourne CBD pub, according to a media release. 
CBRE’s Josh Rutman, Mark Wizel, Paul Tzamalis and Scott Callow brokered the sale along with Killen Thomas agent David Marks.
Rutman said the hotel’s sale attracted widespread buyer interest, as evidenced by the auction.
“With nine bidders competing on the day, many being multiple CBD owners, the appetite for well-located corners in the city is evident."
Lazaros Papasavas – multiple owner of CBD assets and one of the underbidders for the property on the day - said, “We've been very encouraged by the activity and growth in the CBD market over the last 12-18 months, and... understand the value of this market well and, despite prices increasing, see great value in the CBD."
In addition to the Metropolitan Hotel, The Great Western Hotel at 204-208 King Street also changed hands for $6.5 million on a yield of 2.9%.
Rutman said the recent transaction flurry was testament to the growing strength of the western end of the CBD.
"We are experiencing the strongest selling conditions in the Melbourne CBD in more than 30 years and there is no fundamental indicator pointing to why it should slow down,” he said.
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