Cushman & Wakefield to hold portfolio auction in Sydney and Melbourne

“We’ve recognised that there’s an opportunity in the market to auction (properties with) long-term leases, and particularly leases that are from blue-chip tenants and ASX-listed tenants,” he said.

“The market is very strong, so people are looking to secure these types of long leases for their self-managed super funds and their private investment portfolios.”

A property in Morayfield, Queensland, leased by ASX-listed Cash Converters until 2024, will be auctioned by Cushman & Wakefield. Photo: Supplied

Mr Collins noted that not all properties were suited to go under the hammer, with some better off being sold through an expressions of interest campaign.

“We feel very passionate about only auctioning premium properties with long-term leases to blue-chip tenants, because you’ll have multiple buyers in multiple locations and it gives you the ability to secure the best price via that sale method.”

The commercial real estate agency will bring 10 properties from Queensland, NSW and Victoria to the market through the portfolio auction, which will be led by Damien Cooley, of Cooley Auctions.

This follows several other agencies, Burgess Rawson and CBRE, who also conduct portfolio auctions.

There is “significant value” in holding portfolio auctions as opposed to selling properties under the hammer sporadically, Mr Cooley said.

Another to under the hammer with Cushman & Wakefield will be this BP service station in Kilcoy, Queensland, which earns a net annual income of $431,650, plus GST. Photo: Supplied

“Buyers generally tend to flock towards a portfolio-type investment because they know that the properties that are going to be auctioned on that day will be high-quality investments, which usually involves having a quality tenant for a long lease,” he said.

“The benefit for the buyers is that they get to bid in an in-room auction environment and they can see all the properties they’re competing on.

“If they miss out on one, they can purchase another. They’re the types of properties that can really be bought almost sight unseen.”

Mr Cooley said that the commercial real estate auction market had shown a strong performance, especially the industrial sector.

“Properties in city fringe markets or even CBD markets in Sydney around Haymarket are just selling so, so incredibly well for very low yields,” he said.

“The big thing is yields have come down so much from what they were a few years ago to what we are looking at in today’s market, so buyers are obviously taking that into consideration.”