CBRE Sells Over $51 Million at Latest Portfolio Auction

CBRE's recent portfolio auction achieved a 70 per cent clearance rate, with five of the seven properties offered sold under the hammer following its inaugural portfolio auction in August where sales totalled more than $100 million.

CBRE national director Mark Wizel said the auction has attracted 112 registered attendees, 40 registered bidders and 11 registered interstate phone bidders.

“We would have loved to have emulated the 100 per cent sales rate from our first [auction], however that being said we are delighted with the results we achieved for our vendors and are hard at work to ensure sales are achieved on the two properties that were passed in,” Wizel said.

[Related reading: CBRE’s Premium Property Portfolio Auction Clears $100 Million]A highlight was the sale for Charter Hall of a freestanding supermarket at Kerang, in Victoria’s north-west. The asset, which is situated 279km from Melbourne’s CBD, attracted the strongest bidding on the night and was sold for $15,700,000 – a yield of 6.19 per cent.

Four other properties sold under the hammer while two were passed in – the Nino Childcare Centre in Mickelham and an AMart Furniture Store in the ACT (which was passed in for $10,825,000).

The auction highlighted ongoing interest in the childcare sector with a Guardian Early Learning Group-Leased asset at Point Cook selling to a Melbourne based family for $6,560,000 – reflecting a strong yield of 5.9 per cent. Three bidders were competing for the centre, which was underwritten by a 12-year lease providing for annual CPI increases.

Other childcare assets to change hands on the night included Nino branded centres in Bundoora and Ashburton.

CBRE director Sandro Peluso said $55,750,000 was achieved in childcare centres sale in an eight-week period - all through portfolio auctions“It’s been amazing to see the diverse range of buyers based both in Australia and overseas who have a strong desire to secure ta foothold in the sector.”

The sharpest yield achieved on the night was 5.68 per cent for the Nino Childcare asset in Ashburton, which was snapped up by a Chinese family who moved to Australia around ten years ago.

CBRE national director of Asian Services Lewis Tong said that there had been some recent commentary about a slowing in Chinese investor interest in commercial property assets in Australia – and that sector of the market had been “patchy” in the past eight weeks.

“It’s important to recognise that we have seen slower periods before and I’m confident that Chinese buyers will continue to be attracted by the strong fundamentals of the Australian commercial property market,” Tong said.