Investors have made another barnstorming run for fast food outlets and childcare centres, buying up more than $51 million of Queensland assets at a portfolio auction event that saw a 94% clearance rate.

The Burgess Rawson event held in Brisbane is the second of three being held along the eastern seaboard this week, and which were were tipped to reap a combined $260 million.

At Tuesday’s Melbourne event, 20 out of 21 properties sold under the hammer for more than $83 million on a blended yield of 4.64%. Sydney has its turn today.

The blended yield at the Brisbane edition was 4.99%, with the total sale prices netting the vendors just under $6 million above the collective reserve.

The first two properties of the day sold for sub-4% yields. Twenty-five bidders competed for the Jax Tyres property at Michelton, which sold sight unseen to a Melbourne-based investor for $4,520,000 – some 29% above reserve – and on a sharp yield of 3.10%.

The biggest price achieved on the day was for a 3,392 sqm KFC and Pizza Hut site in Hervey Bay’s Urraween. The $7.96 million figure was 35% above reserve and represented a 3.98% yield. KFC has a 23-year lease plus an option to 2041 and Pizza Hut a 10 year deal with an option to 2039, with respective 3.5% and 4% increases.

Also selling on a sharp yield was the Saviges Seafood outlet in Bongaree. An investor forked out $1.985 million for the property, at 3.12%.

A pair of Greencross Vet clinic buildings, both located in Toowoomba, sold separately for a combined $3,365,000, achieving yields of 4.49% and 5.14%, and were picked up sight unseen by Sydney and Melbourne-based private investors.

Four childcare centres sold on the day for a combined value of $17,781,000. Burgess Rawson’s joint head of agency, Queensland, Campbell Bowers said Burgess Rawson has achieved a 100% success rate at each auction this year, selling all childcare investments put under the hammer.

Childcare assets sold yesterday included a Coowinda Childcare centre in Caboolture, a G8 Education centre in Banyo, at yields of 4.41% and 4.80% respectively, as well as a Sanctuary Early Learning centre in Bentley Park that fetched $6.95 million on a yield of 5.45%, and a Genius Early Learning centre in Nerang, selling for $4,701,000 at 5.58%.

Three assets in Torquay, in the Hervey Bay region, all sold at similar yields just above 5%. They included a Subway outlet (which sold for $969,000, at 5.27%), the Go Natural Foods & Coffee Shop ($1.21 million, 5.32%) and a Foodworks supermarket ($2,125,000, 5.35%).

An IGA supermarket – billed as “the only supermarket in Burpengary East’ – sold for
$2.61 million with a 15-year lease to 2029 plus options that represented a yield of 5.88%. The 876 sqm store anchors The Hub Shopping Centre.

Also selling were a pair of Shell service stations. A Rockhampton site sold for $2,735,000 at 6.22%, with a lease to 2027 plus multiple 10-year options, and a Mackay site changed hands for $1,270,000, at 6.88%.

Australian Property Journal