“As we come out of COVID we’ll see a lot of petrol station owners seek to realise growth and test the market.”
At the Burgess Rawson Sydney auction, nine from ten properties sold either prior to auction or under the hammer with the Tabcorp-leased Neutral Bay asset on Sydney’s lower north shore at 128 Military Road going for $3.4 million on a 4.69 per cent yield.
“We received well over 100 enquiries and 18 contract requests – the A-grade ASX listed tenant, location and favourable lease terms were all major drawcards for the interest received in this property,” Burgess Rawson associate director Kieran Bourke said.
Another star sale of the day was a strata-titled pharmacy in Cardiff NSW, tenanted by Star Discount Chemist, which sold for $2.65 million on a low 4.43 per cent yield.
“With the trend of people moving away from central city locations into regional areas, we have noticed a shift in the market with regional assets becoming increasingly more sought after. The sale of the Cardiff Pharmacy is a testament to this growth corridor regional NSW is experiencing,” Mr Bourke said.
“We see investor confidence in regional areas to be a long term transition, not just the current climate due to COVID,” Burgess Rawson director Simon Staddon said.
The demand for essential service properties was evident again, with another pharmacy and a medical asset being eagerly snapped up.
“The sale of two pharmacy tenanted investments including Chemist Warehouse in Nowra, south of Sydney for $2.75 million and the pre-auction sale of a Medical Centre in Mona Vale, on Sydney’s northern beaches emphasises the strength and demand of the essential service medical asset class. This sector is incredibly hot right now and growing in popularity,” Mr Staddon said.