“We had strong bidding at our auctions cementing the investor confidence in solid bricks and mortar assets, with our properties achieving yields that have not correlated with interest rate rises.’
A highlight was the $1.035 million sale of a Goodyear Autocare in Anderson Street, Leongatha, which sold on a yield of just 3.75%.
Early education was another strong performer with the Children’s House of Learning in St James, WA selling for $1.18 million, on a yield of 4.66 per cent. In Melton, the Story House Early Learning Centre sold for $1.75 million on a yield of 5.3%.
EG Group sold its second property, located on the corner of O’Herns and Cotter Roads, Epping, for $7.4 million. The asset provides a net annual income of $444,225 and is a significant 3,483 square metre landholding. The sale follows Wednesday’s result of their Cameron Park property which sold for $7.67 million, reflecting a yield of 5.87%.
In Whitehorse Road, Blackburn, the Daiku Restaurant in the Pace development sold for $2.35 million, reflecting a yield of 5.45%.
The Sydney auction saw 14 properties sold for a total of $35.25 million reflecting a success rate of 74%.
Highlights in Sydney include the new vacant centre in East Hills, which sold to an owner-operator for $3.977 million. If leased, it offered a potential income of $176,000, which would provide a return of just 4.43%.
A clean sweep was achieved for the four entry-level retail assets leased to NRMA. The Nowra outlet sold for $1.62 million on a yield of 6.91%, while the Picton property was the most affordable, selling for $801,000, reflecting a yield of 6.35%.
