Burgess Rawson Sydney Portfolio Auction

Hi Commercial Crowd,

Does anyone have experience or an opinion on these auctions? There seems to be a lot of quality tenants including one to the State Government in my home town on a 5x5x5 lease in the main street that caught my attention.

I've not experienced an auction like this. Do people just do their figures based on the income stated and throw in their best offer or are these something the institutional players come in and scoop them up?

Regards, HappyChat

 

I noticed several Service NSW centres up for sale.

• You need to consider what advantages/features this site has over others in town & what are the alternatives (how close to the next one)?
• What use could you put the building if they vacate?
• How long will it take to relet?
• Are there any other government offices in town or is this all that's left?

 

Thanks for the feedback. One advantage is the centre of town main street location but I would need to check out the alternatives.
The only other use for the building if they vacate would be retail. I'll need to speak to managing agents to see how long it would take to relet. I'd need to learn the vacancy rate as well. (Or at least walk the main street and count vacancies for myself.)
Interestingly, there is another government office in town that is also being sold. It was the RMS where you'd go to get your licences. They've just moved out and its being sold as vacant possession.
I've asked for the information memorandum on the tenanted one and will post any details.

 

Burgess Rawson do these auctions regularly and buying at one is no different to buying at any other auction, need to asses the investment on its merits, government tenant or not.
Another one to look at is every tuesday morning at Auctionworks. Not just one agency but 95% commercial properties.

 

I went to auction a few times.

They have contract with various government department to sell its properties.

It's a good buy and hold type of asset. Many people I know buying these properties under their own family SMSF.

 

How do you guys find out the estimated price for the sale properties? To work out the rental return %.
Is there a site e.g. onthehouse? I'm interested in knowing more about commercial properties.