CBRE’s portfolio auction event reaps almost $80 million

Almost $80 million was transacted at CBRE’s Portfolio 185 auction series with yields sharpening to as low as 3.65%, underscoring strong investor appetite for defensive, income-producing assets. 

The event achieved a strong success rate of 82% with an average yield of 5.64% reflecting continued compression across prime assets.

CBRE’s Craig Chapman said the results demonstrated strong investor demand for high-quality, income-producing assets, with recent federal budget changes to residential investment prompting more capital to shift into commercial property.

In Queensland, a convenience retail asset leased to Ampol in Yamanto, Ipswich sold for $6.92 million at 6.10% after opening bid at $6 million.

CBRE selling agent, Tom Lawrence said that with five years remaining on the lease, it was a strong result for an established convenience retail asset. The Zarraffa’s Coffee outlet next door sold for $2.735 million at a sharp yield of 4.99%.

Sydney recorded a particularly strong day, with nearly $44 million transacted, including several childcare assets. Two Goodstart Early Learning centres sold quickly, with the Hurstville (NSW) property achieving $2.67 million on a sharp 3.65% yield, while the Labrador (QLD) centre sold for $4.91 million at a 4.64% yield.

CBRE’s Yosh Mendis said the results reflected sustained demand for essential-service assets.
“Investor demand remains exceptionally strong for assets underpinned by non-discretionary spending.

“We’re seeing buyers compete aggressively for secure income streams, particularly in childcare, healthcare, fast food and convenience retail,” he said.

Convenience retail assets also attracted significant competition, highlighted by the sale of an On The Run (OTR) property, which drew 93 bids before selling for $5.691 million at a 5.65% yield.

Healthcare assets also performed strongly, with The Smile Office and Orthodontics property in Balgowlah (NSW) selling for $6.685 million at a 5.65% yield. A McDonald’s asset in Zetland sold for $6.8 million at 4.39%, while Key Health in St Leonards transacted for $2.7 million at a 5.46% yield.

In Melbourne, the auction event saw a high volume of entry-level assets change hands, particularly across regional markets, with approximately $20 million in sales recorded.