Three Properties Sell at CBRE Auction with Yields Around 5%

With a reported attendance of more than 250 and multiple bids, the final CBRE premium portfolio auction of the year ended with a low clearance rate as just two of seven properties sold under the hammer.

A Woolworths supermarket in Port Lincoln, South Australia and a G8 Childcare and Education Centre in Blackburn, Victoria sold at the auction.

The Woolworths sold for $15,550,000 with a yield of 5.87 per cent, while the child care centre sold for $9,050,000 with a yield 4.72 per cent.

The portfolio also included a BP petrol station in Cranbourne, which sold prior to auction for $11 million and a 7-Eleven for $5.15 million in Malvern on a yield of 4.2 per cent, which sold post-auction. They lifted total sales to just under $41 million with an average yield of 5.1 per cent.

Two BP petrol stations in Melbourne and Ipswich were passed in as was a Chemist Warehouse and Medical Centre in Caroline Springs and a Dan Murphy's in the ACT.

The clearance rate was a lacklustre result in comparison to other CBRE auctions which have in the past delivered clearance rates of 100 per cent and 70 per cent with more than $150 million in total asset sales.

[Related reading: CBRE’s Premium Property Portfolio Auction Clears $100 Million]

“We go into every auction with the hope that we will sell 100 per cent – the reality is with this portfolio that the assets themselves are special and at times this can make the decision of selling a little harder for vendors,” CBRE said in a statement.

“With that being said we sold three [properties] during the auction process and two shortly thereafter with the highlight yield being just over four per cent for 7/11 Malvern.”