Bank-leased assets among the hottest properties at Burgess Rawson portfolio auction

The annual net income for the freehold property is $161,960 plus GST.

Selling agent Simon Staddon, who has the listing with Darren Beehag, expects the property to sell on a yield of about 5 per cent.

In the inner-west suburb of Five Dock, a 187-square-metre commercial strata space at 2/118 Great North Road is also leased to CBA for seven years until April 2021, with options to 2031. It returns $113,500 a year plus GST, and is expected to sell on a 5.5 per cent yield.

“Interest has come from across the board and that tends to be the case for these (bank-leased) assets,” Mr Staddon said.

He added that the rent comes in “like clockwork”, making it an appealing asset for high-net-worth investors.

More than 200 inquiries were received for the Redfern property and about 120 for the Five Dock listing.

The Redfern property was last sold for $1.1 million in 2010 while the Five Dock strata space last changed hands for $210,000 in 2003, according to Domain Group data.

Another major property on the radar of investors is a freehold distribution centre at 185 Berkeley Road, Unanderra, in the NSW regional city of Wollongong. It is leased to the government-owned freight and logistics company Star Track, and generates $825,114 a year plus GST.

The facility occupies 4484 square metres of the 15,620-square-metre site.

The assets are among 16 commercial properties across NSW and Queensland expected to sell at Burgess Rawson’s first portfolio auction of the year, with other properties tenanted by childcare centres, fast food chains and convenience stores. Price guides for the assets start from about $500,000 to more than $10 million.

Two properties, including a childcare centre in Western Australia’s Swan View and a service station in NSW’s Leeton, sold before the auction day.

The portfolio auction will be held at Doltone House Hyde Park, 181 Elizabeth Street, Sydney, from 11am.