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Inaugural portfolio auction achieves $14.4M

Wendy Yee • 20/10/2017
Cushman & Wakefield secures $14.4m in sales during inaugural portfolio auction
 

• Four sites sold for $14.4m during portfolio auctions held in Sydney and Melbourne
• Includes portfolio of three Caltex petrol stations sold for $12.1 to private investors
• Standout sale included Mt Waverley Caltex site sold for $4.3m on a 3.48% yield

Cushman & Wakefield today announced the successful sale of four properties for a total of $14.4 million during its inaugural portfolio auctions held in Sydney and Melbourne. The sale of the four sites represented a 66% clearance rate with the remaining two unsold properties already under negotiation.

The properties sold included a portfolio of three Caltex petrol stations in Melbourne and Sydney all with 15 year leases in place. The auction was led by the sale of the 2,665 sqm Mt Waverley Caltex site located at 622 – 626 Blackburn Road at one of Melbourne’s busiest intersections, selling to a private investor for $4.3 million on a low yield of 3.48%. The remaining two Caltex sites included the 1,908 sqm site at 369 Warrigal Road in Cheltenham North, Melbourne, that sold to a private investor for $4.2m on a 4.28% yield, and a 3,385 sqm site located at 13-15 Pacific Highway in San Remo Caltex, New South Wales, sold to a private investors for $3.6 million on a 6.1% yield.

In addition, a property located at 72 Baylis Street in Wagga Wagga, New South Wales, tenanted by National Australia Bank, was sold to a private investor for the first time in 25 years, for $2.31 million on a 6.72% yield.

The auctions were held at Cushman & Wakefield’s Sydney and Melbourne offices, with the campaign led by Cushman & Wakefield National Director, Investment and Sales, Michael Collins, and facilitated by Auctioneer, Damien Cooley from Cooley Auctions.

Commenting on the auctions, Michael Collins, said: “The result of Cushman & Wakefield’s inaugural portfolio auction delivered a strong outcome for vendors, and reaffirmed the appetite amongst high net worth investors to secure retail properties with strong leasing covenants and long-term blue chip tenants.

“We received over 160 inquiries from potential buyers of the three properties within the Caltex portfolio, attracted to the strength of the retail locations with 15 year lease agreements in place. These assets were hotly contested, with particular interest in the Mt Waverley site, selling under the hammer for a sub 4% yield.”

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