CBRE’s Portfolio Auction Series 188 generated almost $50 million in sales nationally, with investors continuing to compete strongly for quality assets offering secure income streams and long-term fundamentals. The auction campaign achieved a 63.64% success rate and a blended yield of 5.73%.
CBRE Senior Director Yosh Mendis said investors remained focused on assets underpinned by strong fundamentals and proven tenant covenants.
“Demand remains strongest for well-located assets backed by quality tenants and secure income streams. Across the country, we’ve seen investors compete strongly for defensive assets where the fundamentals stack up, particularly those offering long lease terms, established locations and reliable cash flow. Regardless of asset class, quality continues to attract capital.”
Sydney was the standout result, generating $36.34 million in sales and attracting 57 registered bidders, with buyers placing an average of 26 bids per property. The city achieved a 69.23% success rate, with nine assets sold.
Among the campaign’s highlights was the highly contested $13.375 million sale of a Derwent Park, Tasmania, industrial asset leased to PFD Foods, a wholly owned subsidiary of Woolworths. The property, sold by CBRE’s Yosh Mendis, Matthew Wright, George Wilkinson generates annual rental income of $781,130 and changed hands on a sharp 5.84% yield following strong competition from multiple investors across Australia eventually selling to an interstate investor introduced by Zomart He of CBRE Private Wealth Asian Investment Services Team.
Mr Mendis said it was the highest investment transaction achieved under the hammer this year.
In South Australia, an Australia Post distribution centre in Murray Bridge transacted for $7.606 million, reflecting a 5.01% yield underpinned by a 15-year lease. The property saw huge national interest with over 15 registered bidders across Australia.
A Pets Domain-leased investment in Yamba, NSW, also drew significant investor interest, selling for $2.262 million on a 5.24% yield, reinforcing ongoing demand for defensive, tenant-backed investments.
Meanwhile, an Ampol service station in Bomaderry, NSW, attracted 83 bids before selling under the hammer for $2.001 million, reflecting a tight 4.54% return.
In Brisbane, investor demand remained robust, with the city recording the highest success rate nationally at 75%. A standout result was the sale of the Ampol service station at Flagstone which sold for $4.551 million while an asset leased to Unplugged Yoga in Ashgrove transacted on a 4.4% return.
Craig Chapman said the result highlighted continued demand for service station and convenience retail investments backed by strong operators and long-term income security.
“Investors continue to be attracted to assets with essential-service characteristics and proven tenant performance. Well-located assets with secure income streams remain highly sought after, particularly where they offer long-term landholding value and reliable cash flow.”
Melbourne activity was characterised by strong participation from entry-level private investors. A childcare investment in Mornington sold on a 5.53% yield while a regional Tradelink asset also transacted, reflecting ongoing demand for smaller-format commercial investments offering secure income and accessible price points.
Mr Mendis said the campaign results underscore the depth of capital targeting defensive commercial property investments, with buyers continuing to pursue assets backed by quality tenants, long lease terms and established locations despite ongoing market uncertainty.
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