Low rates, vaccine announcements tipped to stoke bidding at final commercial property auctions of 2020
Properties with essential service that remained open during the recent COVID lockdowns are in demand from investors at the last commercial property auctions of the year.
Bottle stores and gas stations will be among the top 25 assets in demand at Burgess Rawson Sydney’s final portfolio auction on Tuesday, December 8th.
Gladesville, a retail property rented to Dan Murphy’s at 330 Victoria Road, is likely to get one of the best results of the day, agents say.
Five rental properties in this mixed-use complex in Drummoyne are being sold separately. Photo: Delivered
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According to Darren Beehag, director of Burgess Rawson, the property has received “hundreds” of requests.
With a term of 15 years through 2030 and options through 2070, the property’s position among a number of new residential complexes had proven to be a strong selling point.
“Dan Murphy’s investments aren’t brought to market very often, especially one of these calibres in the metropolis of Sydney. In the prestigious suburb of Gladesville, the property is just a stone’s throw from Sydney Harbor, ”said Beehag.
In Drummoyne, the company is auctioning five retail properties on behalf of the developer EG Funds Management. The stores were built as part of the mixed-use Tempo development at 77-105 Victoria Road.
The tenants of the buildings include the restaurants Ribs & Burgers and Dumplings & Beer.
Other properties for sale include three Shell gas stations in Maitland and Minto in NSW and Ingham in Queensland.
All three are leased to Viva Energy until 2026, with seven other options until 2096.
Mr. Beehag said a combination of business and public health announcements created a “sweet spot” for commercial property sellers.
“While good properties always lead to increased demand, the ‘lower for longer’ interest rate environment, coupled with this week’s COVID vaccine announcements, has helped spark strong pre-auction buyer inquiry,” he said.
The portfolio auction in Sydney will be followed by a similar auction in Melbourne on Wednesday 9 December. It is Burgess Rawson’s first personal portfolio auction in Melbourne since the lockdown restrictions were relaxed.
This auction includes assets such as a newly built Starbucks located at 188-202 Wayne Goss Drive in Berrinba – in the town of Logan, Queensland.
This newly built drive-through Starbucks in Berrinba, Queensland is up for auction. Photo: Delivered
The drive-through Starbucks opened in November of this year and is leased to the coffee giant for 12 years, with an annual rent increase of 3 percent.
“This is a true blue chip portfolio that includes well-known brand tenants, new builds and long-term leases,” said Raoul Holderhead, director of Burgess Rawson.
Other properties to come under the hammer include a Bridgestone auto repair shop and Sparkles car wash, both in the same district of Berrinba Central.
The total projected value of the auctions in Sydney and Melbourne is more than $ 147 million. The pricing guidelines for the property start at $ 500,000 and go up to $ 11 million.
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