Secure tenants hold the keys to sales
SECURE high-profile tenants, including Subway, Caltex Woolworths, Beaurepaires and Midas, brought strong sales in Burgess Rawson's final auction of 2012 this week.
Nine properties - from Ulverstone in the south via Ferntree Gully and Sunbury in Victoria to Noosa Heads and Mount Isa in the north - were offered for sale, with one withdrawn at the last minute, five sold, another expected to sell on Saturday, and two passed in.
Burgess Rawson director Raoul Holderhead said the strong result partly reflected low stock numbers (only half of last December's) but also the quality of properties and tenants. "If you have no-name tenants, they don't sell," he said.
A 236-square-metre shop at 6 Reibey Street, Ulverstone, leased to Subway, sold for $300,000 with a 7 per cent yield, and Sunbury's Subway, at the Target Centre, sold for $610,000 after strong competition, yielding 6.55 per cent.
The Sunbury sale was one of three in the town, two at auction and one privately, in 24 hours for Burgess Rawson. A 1628-square-metre site on the corner of Horne and Neil streets was sold for $2,903,000 at auction, yielding 6.75 per cent. It houses Beaurepaires and Midas, with annual rent of $196,000.
A large site at 35 Cornish Street, housing the Community Kids childcare centre, sold for $2.31 million, a yield of 8.45 per cent.
In Ferntree Gully, a 2135-square-metre site, leased until 2046 to Caltex Woolworths, sold to a Sydney buyer for $2.81 million on a yield of 6.16 per cent.
In Queensland, a Noosa coffee shop at Bay Village on Hastings sold for $1.51 million, while at Mount Isa, 17-19 Simpson Street, which houses Subway, Pizza Hut and Blockbuster Video, was passed in on a vendor bid of $2.95 million but was expected to sell to a Brisbane buyer on Saturday, Mr Holderhead said.
A 120-year-old Italianate building at 43 Gellibrand Street, Colac, operating as a restaurant, was withdrawn an hour before auction.