Coffs Harbour office tower expected to fetch more than $9m at Burgess Rawson's Sydney portfolio auction
A well-known office building in Coffs Harbour, on the NSW mid north coast, is set to fetch more than $9 million when it goes under the hammer on Tuesday.
Federation House, at 24 Moonee Street, is leased to primarily government and national tenants, such as Optus and Vodafone, with an annual net rental income of $916,168.
The eight-storey building is expected to be the most expensive property of the 28 commercial properties going to auction with Burgess Rawson.
The portfolio auction includes properties in NSW and Queensland, with price guides starting from about $1 million.
Leading the investor interest are two childcare centres on Sydney’s north shore, both with price guides of about $3.8 million on a yield of approximately 5 per cent.
The North Turramurra and St Ives assets earn $187,200 and $190,000 a year in net rental respectively.
Burgess Rawson listing agent Michael Vanstone received 85 inquiries and issued 33 contracts for the North Turramurra property, and said interest had come mostly from locally based younger investor groups with Asian backgrounds.
He attributed the strong interest to the tenant Earth Kids, which is a brand of G8 Education, the largest ASX-listed childcare centre operator in Australia.
“Land is scarce, so it’s harder to put a childcare centre in a good location,” Mr Vanstone said.
“They have a really strong occupancy level which makes it very attractive to an investor.”
Another listing to watch out for is a building in Maroubra in Sydney’s east, which is expected to sell for more than $4.5 million.
With the ground floor leased to ASX-listed pet care company Greencross, it has drawn in more than 100 inquiries and at least 30 contracts issued.
The portfolio auction will be held at Doltone House, 181 Elizabeth Street, Sydney, from 11am.
