All 8 NSW government properties sold at Burgess Rawson auction

All 8 NSW government properties sold at Burgess Rawson auction
All 8 NSW government properties sold at Burgess Rawson auction

The final Sydney Burgess Rawson portfolio auction of the year raked in nearly $65 million in sales with an 80% clearance rate.

All eight commercial buildings put up for sale by the NSW state government were sold, indicating investor confidence in the NSW economy. 

The sale of these properties, all in regional centres outside of Sydney and leased to tenants such as Services NSW and Roads and Maritime Services offering five-year leases with fixed annual rent increases of 3%, will boost the state's coffers by almost $17 million.

The properties were at Bathurst (Robin Hill), Cessnock, Deniliquin, Grafton, Mittagong (Welby), Penrith, Unanderra (Wollongong) and Tweed Heads.

Net incomes were in the range of $23,445 per annum to $335,760 per annum, with the yields ranging from 4.3% for a Motor Registry office in Mittagong in the Southern Highlands, which fetched $1.88 million, to 6.7% for a Motor Registry office in Wollongong, which sold for $3.34 million.

A Sydney buyer paid $5.71 million for a Motor Registry office in Penrith, translating to a yield of 5.9%. 

In all, 20 out 25 properties up for auction were sold under the Burgess Rawson hammer.

The highest price of $8.1 million was a retail property in Armidale in the NSW Northern Tablelands, which has a Woolworths-owned Dan Murphy's liquor store and a Dick Smith electronics outlet. The yield works out at 6.9%.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

Tags: 
Property market Commercial Auction

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