Low rates, vaccine announcements tipped to stoke bidding at final commercial property auctions of 2020
Essential-service properties that stayed open during the recent COVID lockdowns will be among those sought after by investors at the last commercial property auctions of the year.
The final Burgess Rawson Sydney portfolio auction will see bottle shops and service stations among the most in-demand assets of the 25 to go under the hammer on Tuesday, December 8.
A retail property leased to Dan Murphy’s at 330 Victoria Road, Gladesville is likely to fetch one of the best results on the day, according to agents.
The property has received “hundreds” of inquiries, according to Burgess Rawson director Darren Beehag.
On a 15-year lease to 2030, with options to 2070, the property’s position among a series of new apartment developments had proven a strong selling point.
“Dan Murphy’s investments are not listed to market often, particularly one of this calibre in metropolitan Sydney. In the well-regarded suburb of Gladesville, the property is a stone’s throw away from Sydney Harbour,” Mr Beehag said.
Just down the road in Drummoyne, the firm is auctioning five retail properties on behalf of developer EG Funds Management. The stores were built as part of the Tempo mixed-use development at 77-105 Victoria Road.
Tenants of the buildings include restaurants Ribs & Burgers and Dumplings & Beer.
All three are leased to Viva Energy until 2026, with seven further options to 2096.
Mr Beehag said a combination of economic and public-health announcements had created a “sweet spot” for commercial property sellers.
“While good real estate always leads to increased inquiry, the ‘lower for longer’ interest-rate environment coupled with this week’s COVID vaccine announcements, has helped drive strong buyer inquiry ahead of the auction,” he said.
The Sydney portfolio auction will be followed by a similar auction in Melbourne on Wednesday, December 9. It will be Burgess Rawson’s first in-person portfolio auction in Melbourne since the easing of lockdown restrictions.
That auction will include assets such as a newly-built Starbucks at 188-202 Wayne Goss Drive, Berrinba – within the Queensland city of Logan.
The drive-through Starbucks was opened in November this year and is leased to the coffee giant for 12 years, with 3 per cent annual rent increases.
“This is a true blue-chip portfolio including well-known brand tenants, new constructions and long-term leases,” Burgess Rawson director Raoul Holderhead said.
Other properties set to go under the hammer include a Bridgestone auto service outlet and Sparkles car wash, both within the same Berrinba Central precinct.
The predicted combined value of the Sydney and Melbourne auctions is more than $147 million. Price guides for the properties start at $500,000 and stretch to $11 million.
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