A Kurri Kurri service station and a Nelson Bay building were among 17 commercial properties sold under the hammer at Burgess Rawson's June Portfolio auctions last month.
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The Shell-branded Kurri Kurri service station sold for $3.055 million on an 8.51 per cent yield and Nelson Bay's Centrelink building sold for $2.015 million on a tight 5.87 per cent yield.
Burgess Rawson director Darren Beehag said essential service assets are proving most popular when it comes to post-COVID commercial property investments, with the Nelson Bay Centrelink site attracting a flood of eager investors.
"The Nelson Bay Centrelink attracted a staggering 135 enquiries in the lead up to auction, with 31 contracts issued in the past month alone," Mr Beehag said.
"Following competitive interest from 10 registered bidders, both over the phone and live in the room, a Sydney-based private investor snatched up the highly secure asset, attracted to the Commonwealth Government income stream.
"With an increasing preference for secure essential service assets, it was no surprise to see investors flock to both the Kurri Kurri Shell and Nelson Bay Centrelink sites."
Set on a 1031 square metre site, the Nelson Bay property featured a purpose-built 382 square metre freehold building within the thriving Nelson Bay town centre precinct.
It had a guaranteed Commonwealth income stream, offering a net income of $122,240 per annum plus GST. The government tenant had a 25-year history at the site and was secured on a lease until 2022, with options extending to 2025.
Burgess Rawson selling agent Kieran Bourke said the rare and affordable government-leased investment's stellar location at 18-20 Yacaaba Street was also of particular investor interest.
"Nelson Bay is a family-favourite location, with this site's prime positioning, just two and a half hours from Sydney and about an hour from Newcastle, drawing investor interest from capital cities right across the country and even overseas," Mr Bourke said.
"Overall, we've experienced really fantastic levels of investor interest during May and June, with enquiries across the board up by 30 to 40 per cent from our pre-COVID levels."