Melbourne

100% Clearance rate at CBRE’s 6th Premium Property Portfolio Auction

CBRE’s sixth Premium Property Portfolio Auction (PPPA) event has achieved a 100% clearance rate – equating to $52.59 million worth of assets sold under the hammer, including two Melbourne Woolworths supermarkets.

15 Aug 2018

CBRE’s sixth Premium Property Portfolio Auction (PPPA) event has achieved a 100% clearance rate – equating to $52.59 million worth of assets sold under the hammer, including two Melbourne Woolworths supermarkets. 

Held at the Zagame Automotive dealership in Richmond, the PPPA event attracted more than 300 bidders and onlookers, with all five retail investment properties achieving strong sales results. 

The two Woolworths assets, located in Burwood East and Scoresby, were secured by Asian buyers for $18.17 million (4.57% yield) and $15.12 million (4.54%) respectively. 

Local buyers were also active in the bidding, with a Perth-based private investor purchasing the KFC in Eagleby for $3.725 million (4.47% yield) and separate Melbourne-based investors securing the Eagleby Caltex Service Station for $12.05 million (5.72% yield) and the Brooklyn Veolia headquarters for $3.525 million (5.36% yield. 

CBRE PPPA VI Results:

 Property Price Yield
 Veolia Brooklyn  $3,525,000  4.54%
 Woolworths Burwood East  $18,170,000  4.57%
 Woolworths Scoresby  $15,120,000  5.36%
 KFC Eagleby  $3,725,000  4.47% 
 Caltex Eagleby  $12,050,000  5.71%

CBRE PPPA Project Head Joseph Du Rieu commented on the success of the event: “With 26 active bidders and 100% clearance rate, it is clear that the local and Asian investor markets are continuing their flight to quality, securing premium investment properties. By strategically positioning these properties with the highest possible market exposure, we have been able to achieve premium prices for our value clients.” 

CBRE’s Asian Services Desk retail specialist Kevin Tong said the number of Asian attendees and bidders on the night highlighted the continued demand for assets that offer both income and underlying land value. 

“When Chinese investors started investigating into Australian supermarket and shopping centre assets, they weren’t familiar with the covenants and family brands, which local investors had grown up with. For example, Woolworths and Wesfarmers were foreign to them and they weren’t full aware of the strength and security of these tenants,” Mr Tong said.  

“However, since then our team has been educating newer investors in the market on the benefits of these investments – and successful in transacting 13 supermarket/shopping centre assets to Asian investors over the last 10 years.”  

The sixth PPPA event marks the first anniversary of the platform, with $300 million in real estate transacting via the platform since its launch. 

The next CBRE PPPA event will be hosted in October 2018.For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.