Dan Murphy stores sell at sub-5% yields at Burgess Rawson auction
Jonathan ChancellorDecember 7, 2020
Woolworths-backed retail properties sold well at last week's Burgess Rawson portfolio auction in Sydney.
The two, large-format Dan Murphy's liquor stores in NSW smashed price expectations on sub-5% yields.
A near-new Dan Murphy's on Victoria Road in Gladesville fetched $11.51 millon on a 4.6% yield.
A new Dan Murphy's on Crawford Street in Queanbeyan, NSW sold for $11.3 million on a yield of 4.7%.
Both properties have fresh 15-year leases with Woolworths plus renewal options to 2060.
Burgess Rawson director Graeme Watson, who forecast the Dan Murphy's liquor stores to sell for as much as $10 million with yields ranging from 5.5% to 6.25%, said he had over 350 enquiries for the two Dan Murphy's.
There were seven bidders on each of the properties.
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.