Strong Results for CBRE Portfolio Auction 187 with Yields as Sharp as 4.11%

CBRE’s Portfolio Auction Series 187 realised a total of $42 million, highlighting continued demand for essential service investments, with yields as sharp as 4.11%. The overall success rate was 76.47% and the average yield was 5.35%.

CBRE Senior Director, Yosh Mendis said the results underscore the ongoing appeal of defensive investments aligned with everyday consumer needs and essential services.

“The strength of bidding across childcare, convenience retail and large format retail investments demonstrates investors remain highly attracted to defensive assets backed by established operators and reliable income streams,” Mr Mendis said.

CBRE Senior Director Matthew Wright said the opening results reflected the continued appeal of assets underpinned by essential services and strong tenant covenants.

“The competition we have seen today highlights the depth of capital pursuing well-leased essential service investments, particularly those offering long-term income security and exposure to sectors with strong underlying demand fundamentals.”

Fast food assets were particularly sought after, with a KFC in Springvale selling for $4.5 million at a 4.77% yield, while the Goodstart Early Learning centre in Point Cook changed hands for $3.67 million, reflecting a 5.09% return. Entry-level investors again featured strongly throughout the campaign, snapping up a number of assets in Clyde and underscoring the depth of private capital targeting affordable investment opportunities.

The Sydney auction was headlined by the sale of the Goodstart Early Learning centre in New Lambton for $2.365 million at a 4.11% yield. Convenience retail and trade-focused investments also performed strongly, with the Reece Plumbing asset in Yamba selling for $4.395 million at a 5.01% yield.

A tightly held inner-west Sydney childcare investment has sold for $5.775 million. The 48-place childcare centre occupies a prominent 755sqm corner landholding just six kilometres from the Sydney CBD and transacted on a 4.98% net yield, underpinned by a new 10-year lease to one of Australia’s largest privately owned childcare operators.

Elsewhere, the BP service station in Scone changed hands for $5.201 million, while two shops in Roseville Chase leased to Simplicity Funerals sold for $1.75 million at a 4.75% yield. A medical and retail centre in West End, Queensland, was also sold prior to auction for $3.3 million at a 4.2% yield.

The results reflect ongoing competition for childcare, fast food, convenience retail and service-based investments, with buyers continuing to favour defensive income streams backed by established operators and long lease profiles.