Cash buyers rush in at commercial selling event

Ingrid Filmer, CEO of Burgess Rawson, reported that the firm saw a higher level of buyers paying cash, having sold out of the residential investment market and turned their attention to commercial assets with long leases.

‘‘We know they are cash buyers because they are settling within 30 days and some were buying through self-managed super funds,” Ms Filmer commented.

Some of the properties that attracted the most interest included a laundromat near Melton in Melbourne’s outer western suburbs, which attracted 115 bids, and a Ballarat dental surgery that sold 23 per cent above its reserve price in front of a packed crowd.

Fast food also appeared to whet the appetite of investors, with a McDonald’s outlet on Princess Highway in Unanderra selling for $5.75 million, reflecting a yield of 3.51 per cent.

Two Guzman y Gomez restaurants also found buyers, with one in Unanderra selling for $5.73 million (a yield of 4.45 per cent) while the other in Nowra fetched $6.03 million – a 4.55 per cent yield.

And a Red Rooster in Warwick, Queensland sold for $1,705,000, showing a yield of 5.49 per cent.

“Premium properties on secure, long-term leases to multinational and global brands will always be highly contested,” Ms Filmer noted.

Childcare centres performed well, with Story House in Putney selling for $5.71 million, as did medical investments, with an entry-level facility in Kincumber selling for $1.395 million, providing a return of 4.6 per cent.

Meanwhile a laundromat in the new Melton auburn of Cobblebank attracted interest from nationwide chain Blue Hippo before selling to a local investor for $741,000 – 16 per cent above its reserve price. Eight parties went after the asset.

Moreover, two other properties in the same Cobblebank complex – a beautician’s lounge and a cafe – sold under the hammer on yields below 5.5 per cent.