Two M’boro commercial properties sell for more than $3.8 million
TWO major Maryborough retail sites have been snapped up by investors for more than $3.8 million.
A modern 506sq m building in Alice St, tenanted by national retailer Pets Domain, which was snapped up for $1,690,000 on a 5.9 per cent yield at Burgess Rawson’s Flagship Portfolio Auction.
According to Burgess Rawson Director of Sales, Glenn Conridge, the secure lease terms and national brand tenant solidified strong investor interest and generated spirited bidding on auction day.
“Pets Domain are a leading industry retailer with a strong market share, operating more than 35 stores nationally.
“Pairing this with a high-profile, prime corner position adjoining Autobarn with excellent main-road exposure, the buyer recognised the site as the perfect set-and-forget investment,” Mr Conridge said.
Investor interest in the childcare asset class continued to flourish with an entry-level early education centre tenanted to leading childcare providers Affinity Education Group also purchased for $2,125,000 on a 6.99 per cent yield.
According to Burgess Rawson selling agent Doug Doyle, commercial property investors are acutely aware of the benefits of purchasing a commercial property leased to an established childcare operator.
“The childcare property market is always highly sought-after as investors recognise early education providers as strong yielding and stable tenants, as well as the expected rental growth and demand for childcare services,” Mr Doyle said.
“With the demand for the childcare asset class, strength of the tenant and site location, it was no surprise this asset was highly contested by savvy investors and was snapped up prior to auction.”