Four sold at auction

A portfolio auction conducted by Burgess Rawson has seen four out of six properties offered at auction sell for a combined price of just under $5 million. The properties are located in metropolitan and regional NSW and include five retail premises, three of which sold, and a lone industrial property leased to Telstra.

A St George Bank branch in Rockdale achieved the highest price in the portfolio. Located at 462 Princes Highway, bidding for the branch reached $2.01 million, showing a tight 5.47% yield.

St George have a new five year lease on the 420 sqm building with a further five year option, paying a net rental of $110,000 per annum. The two storey building sits on a 236 sqm site and has a 7.62 metre frontage.

A second bank branch leased to the Commonwealth Bank also sold under the hammer. The property, located at 43-45 Smith Street in Kempsey, was purchased for $1.17 million, reflecting a 6.2% yield. The 593 sqm two storey building is leased for five years with two options of five years each, commencing in June 2005.

The third retail property sold prior to auction for $605,000. Located at 12-14 Waratah Street, Mona Vale, the property comprises a 25 sqm strata titled shop leased to Le Sorrelle Hair Design till 2009 with a three year option. The shop has a 10 metre frontage and was acquired on a yield of 7%.

The sole industrial property in the portfolio is located at 6-8 Whyalla Circuit in Bathurst. Telstra have leased the site, using it as their regional operations depot.

The 9553 sqm site was purchased for $1.21 million on a 9.57% yield. The site will be occupied by Telstra till at least February 2009 although options are in place.

A seventh property was initially included in the portfolio auction but was withdrawn prior. The St George bank branch is now currently under negotiation, with the agent close to finalising the sale of the property.

Located at 159 Queen Street in Campbelltown, the branch is set to be purchased for $5.35 million on a yield circa 6.8%.

The 1535 sqm building has been leased by St George Bank from July 2005 for five years with a further two options of five years each. The two storey building sits on an 861 sqm parcel of land and has a 17 metre street frontage.

Darren Beehag, Simon Staddon, Bob Gibson and David Khoury of Burgess Rawson negotiated the sale of the properties.

More than 200 people were in attendance at the auction, said Mr Beehag.

“There was a lot on interest in the properties”, he said.

“Bidders were attracted to the strong national tenants and the new lease terms.”

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