November Premium Property Portfolio Auction

CBRE’s Premium Property Portfolio Auction platform rounded off the 2018 series with an 86 per cent clearance rate with multiple bidders paying a total of nearly $48 million for six out of the seven properties auctioned.

The properties auctioned on Thursday, November 29 included:

  • 7/11 Service Station, North Melbourne –        $4m                 @ 4.57%
  • 7/11 Service station, Kallangur, Qld     –       $5.27m            @ 5.88%
  • Kiewa Kids Early Learning Albury,     –       $2.65m            @ 7.1%
  • Collins Corner, 620 Collins St Melb     –       $21.55m          @ 4.13%
  • Officeworks Hobart,     –       $11.725           @ 6.19%
  • Discount Drug Stores Boronia Vic     –       $2.057m            @ 6.1%
  • 7/11 service station Cranbourne Vic     –      multiple bids/under offer

Total                                                                            $47.765 million

Since its inception in 2017 the platform has auctioned 42 properties with an 88 per cent clearance rate, an average price of $9.6 million, on an average yield of 5.44 per cent, and in front of crowds totaling over 700 local, interstate and off-shore investors with strong bidding on most properties.

Off-shore buyers, predominantly Chinese, accounted for 13 of the 37 properties sold.

Freestanding supermarkets accounted $144.5 million with childcare assets at $94.1 million and service stations $53.4 million.

According to National Director Investments, Mark Wizel, the PPPA platform was set up with the sole intention of delivering a bespoke premium auction platform, a sales process which had been lacking in the marketplace.

“From conversations we had with clients it was clear that a premium platform had a lot of support and would fill a void in the market presenting an opportunity for purchasers to bid on several premium properties at one single event – an event where buyers would be absolutely confident they were buying a premium property at true market value.

We are very happy with the outcome of a new sales product which has now become a much anticipated event among investors both Australian and off-shore and one which we will continue to offer to the market,’’ Mr Wizel said.

And while investors have enthusiastically embraced the concept, vendors too have been extremely receptive inundating CBRE with requests to offer their assets.

Mr Wizel said there were a number of reasons underpinning the success of the PPPA including that it had been able to achieve an international reach via CBRE’s extensive off-shore networks with PPPA offering exclusivity to a small hand-picked selection of premium investment properties.

PPPA Project Head, Joseph Du Rieu, said buyers had enjoyed the variety of properties offered and the varying price points.

“The PPPA works well with buyers as they are able to shortlist a number of properties that interest them and if they are unsuccessful with bidding on one, they can then put their hand up for the next one,’’ Mr Du Rieu said.

He said the PPPA had cemented its position as a proven premium property sales platform with its strong appeal to both buyers and sellers and in achieving several national commercial property records.

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