Burgess Rawson Auction Smashes Expectations with $58.585M in Transactions, Achieving a Record Yield of 2.92% and a Stellar Success Rate of 94.44%

Burgess Rawson’s Portfolio Auction event in Melbourne continued to deliver stellar results, with a fast-food frenzy pushing yields as sharp as 2.92 per cent. The event realised $58.585 million in transactions, taking the total over two days to $94.345 million. Melbourne recorded a success rate of 94.44 per cent and a blended yield of 5.09 per cent.

Burgess Rawson Partner, Matthew Wright said the Melbourne event saw intense competition for newly built fast food assets, including a McDonald’s in St Albans, which sold for $6 million achieving a national record for a ground lease at 2.92 per cent.

The sale was quickly followed by the $5.46 million sale of Starbucks reflecting a yield of 4.78 per cent and the $7.47 million transaction of El Jannah which provides a return of 4.97 per cent.

Altogether, the three assets generated $18.93 million in sales, with a blended yield of 4.21 per cent and a combined total of 153 bids.

All three tenanted investments were developed by Vernacular Property Group and form part of its recently completed $48 million mixed-use development in St Albans. The assets were sold by Burgess Rawson’s Jamie Perlinger.

Another highlight of the auction included the $8.1 million sale of a Tool Kit Depot asset in Invermay, Tasmania, which delivered a 5.19 per cent return.

Burgess Rawson’s Darren Beehag said it was an incredibly sharp yield for a large format retail asset in Launceston and one of the strongest results we’ve seen in the area in recent times.

“The result was not surprising given the quality of the real estate and the calibre of the tenant.”

Elsewhere, Kip Happy Stays in Dandenong South, Victoria sold for $5.62 million providing a return of 4.86 per cent while a Viva Energy asset in Diamond Creek sold for $5.07 million at a 5.49 per cent return.

Entry level investors were also out in force with a series of three retail assets in Armstrong Creek selling from $820,000 to $1.547 million and two assets in Hampton selling for $705,000 and $1.235 million.

The event follows the successful outcome of day one of Burgess Rawson’s event in Sydney which delivered outstanding results with $35.76 million in sales, a 75 per cent success rate and blended yield of 4.92 per cent.

Headlining the Sydney event was the record-breaking $18.4 million sale and 3.97% yield of a landmark McDonald’s and 7-Eleven investment in Greystanes, NSW which attracted a staggering 293 bids before it sold under the hammer.

Burgess Rawson National Partner Yosh Mendis said the trophy asset attracted strong investor interest, with over 250 enquiries across Australia, with the number of bids and selling price setting a new benchmark for dual-branded freestanding investments.

The Portfolio Auction event concludes tomorrow, June 26 at 10.30am at The Westin in Brisbane.