Three out of four properties sell at glitzy auction event
Three out of four properties sold for a combined $16.695 million on Thursday at a glitzy evening auction event overseen by agency CBRE in the Zagame luxury automotive showroom in Richmond.
The well-attended portfolio auction was staged against a backdrop of Ferraris and other luxury marques at the Richmond venue as buyers attempted to outbid each other for a healthcare centre leased to Sinclair Dermatology, a Nino Childcare Centre, BP and KFC service station and 7-Eleven outlet.
It achieved a 75 per cent clearance rate. The only asset that failed to sell was the childcare centre in Elsternwick which was in negotiation after the auction with a sale expected over the next few days, CBRE’s project head Joseph Du Rieu said.
The healthcare site at 339 Bell Street in Pascoe Vale sold for $3.58 million on a 5.17 per cent yield.
A KFC and BP anchored petrol station at 210 Ballan Road in Wyndham Vale went for $7.665 million (on a 6.48 per cent yield), while a 7-Eleven at 296 Pinjarra Road in Mandurah in Western Australia fetched $5.45 million (on a 6.33 per cent yield).
Recent portfolio auctions have had hit and miss success. The clearance rate at an event held late last year tumbled to 28 per cent amid differing expectations between sellers and buyers.
Portfolio auction specialist Burgess Rawson achieved a 66 per cent clearance for its March auction of 12 properties in Victoria and Queensland, with a stronger showing of investors.
CBRE director Mark Wizel said there was still investor confidence in the fuel sector with the service stations attracting strong interest.
Mr Wizel said there were fewer Asian bidders at the event, which was open to live bidding from offshore investors, than at other times.
Vendors also had more appetite to meet investors in the middle which helped drive sales, he said.
