Woolworths supermarkets headline CBRE's sixth Premium Property Portfolio Auction
CBRE has confirmed the line-up for its next Premium Property Portfolio Auction (PPPA), which will include two freestanding Woolworths supermarkets in metropolitan Melbourne.
18 Jul 2018
The supermarkets will be among five investment properties to be offered at the PPPA event, to be staged on Wednesday 8th August at the Zagame Automotive dealership in Swan Street, Richmond.
PPPA Project Head, Joseph Du Rieu, noted; “The relocation of the event from the CBRE offices to the Zagame Automotive showroom proved to be a huge success for the PPPA brand and we will continue to ensure the platform delivers the highest quality service for our clients.”
The August line-up is as follows:
1. Woolworths Burwood East, Victoria
2. Woolworths Scoresby, Victoria
3. Veolia Brooklyn, Victoria
4. KFC Eagleby, Victoria
5. Caltex Eagleby, Victoria
CBRE launched the highly successful PPPA platform 12 months ago, with the first five auctions achieving an average clearance rate of 86%. Over $250,000,000 in property has been sold at an average yield of 5.33%.
Mr Du Rieu said the variety of properties and varying price points had underpinned ongoing investor interest. To maintain the integrity of the event, CBRE had intentionally restricted this year’s portfolios to five or less properties – each of a similar, high quality.
“One reason the PPPA auctions are so successful is that buyers can shortlist several properties that interest them and, if they are unsuccessful with bidding on one, they can then put their hand up for the next one,” Mr Du Rieu said.
Mr Du Rieu also noted that the first five auctions had achieved four national commercial property records. This included Dan Murphy’s Alphington selling on a yield of 3.21% - the sharpest yield achieved for a freestanding liquor store investment - and the sale of Coles Clayton on a yield of 2.57% - the sharpest yield achieved for a freestanding supermarket investment.
CBRE Asian Services Desk Manager Kevin Tong said the latest PPPA auction coincided with strong interest from Asian based buyers in commercial investment opportunities as they continued to diversify from traditional residential housing investments and target assets such as supermarkets and petrol stations offering long leases and fixed rental increases.
Further government policy changes and residential stamp duty increases were making commercial investments more attractive to this buyer pool, Mr Tong said.
“We anticipate continued interest from Asian based investors in the PPPA platform moving into the second half of 2018, with the blue-chip nature of the properties offered and the long-term income security providing the exact investment product these offshore based investors are looking for,” Mr Tong said.
For further information on the results or future auctions, please visit cbrepppa.com.au or contact Joseph Du Rieu on 0408 892 976.
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.
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.