A huge line-up of 15 fuel and convenience assets and 13 childcare investments will headline Burgess Rawson’s final portfolio for 2021. In total, the December portfolio auction events comprise 74 properties ranging in value from $500,000-$21 million.
Burgess Rawson National Head of Agency Adam Thomas said the quality and diversity of the properties are a fitting finale for an extraordinary year for commercial investment.
“Investors’ hunger for high-quality commercial investments is unabated,” said Mr Thomas. “Year to date, Burgess Rawson has sold 442 properties for more than $1.5 billion. That is an incredible number of transactions.”
Mr Thomas added that he doesn’t believe the commercial market has peaked despite market predictions.
“RBA Governor Phillip Lowe announced just this week that he doesn’t anticipate interest rates will increase in 2022,” said Mr Thomas. “This insight signals that there is still upside in demand in the market.
“Quality property stands the test of time. Investors are playing the long game, seeing these investment opportunities as generational holdings.”
He added that savvy investors will always seek out essential service tenants that continue to thrive and survive during unpredictable conditions.
“Childcare has been a clear example of this. Quality tenants, strategic locations, long leases and secure rental returns prove highly desirable.”
Demand is expected to be high with a large number of underbidders from Burgess Rawson’s November portfolio, along with demand from new investors entering the market.
“We have seen plenty of interest throughout the year from investors that have not typically looked at commercial investment,” said Mr Thomas. “Investors are looking for the security and a stable income that commercial property provides. This has resulted in incredible demand that has seen us add a third day to our national portfolio schedule, growing our portfolio.”
Along with an extensive list of fuel and childcare assets, the portfolio includes medical, industrial, fast food, government and retail investments with high profile tenants such as 7-Eleven, United, Viva Energy, Hungry Jack’s, Taco Bell and Officeworks.
“This portfolio shows the depth of the market with a diverse mix of asset types, locations and price points,” and Mr Thomas. “I expect we will see great competition for both metropolitan and regional locations along the eastern seaboard.”
Burgess Rawson’s next auctions will be held in Sydney at the Sydney Opera House on 14 December; Melbourne at the Crown Casino on 15 December and Brisbane at the Hilton Brisbane on 16 December with bidding available by phone, online or in person at state offices.