CBRE’s Premium Property Portfolio Auction – The Story So Far

Melbourne, August 21 2018 – It has been twelve (12) months since CBRE launched its portfolio auction platform, the Premium Property Portfolio Auction (PPPA), which has yielded strong results in the first six (6) consecutive events. Over $300,000,000 in property has been sold through the platform in the past year at a clearance rate of 86% and average yield of 5.31%.

The PPPA platform was set up with the sole intention of delivering a bespoke premium auction platform that commercial property owners could benefit from, something CBRE noticed was lacking in the market place last June. Mark Wizel, National Director for CBRE Australian Retail Investments said:

“We knew that there would be negativity and doubt from people in the commercial property industry, however there was confidence from the team that a premium platform would fill a void in the market place and I think the results from the first six (6) auctions are proof of that.”

Vendors have been extremely receptive of the platform with CBRE inundated with requests to offer assets through the auction platform. Mr Wizel puts this down to four key reasons;

1. The PPPA is Australia’s only true national portfolio auction platform with international reach
2. There are more agents working on each campaign providing a greater network of buyers to be moved in between assets
3. CBRE is committed to building the platform and growing the offering by aligning with like-brands such as Zagame Automotive
4. PPPA is exclusive to a small hand pick selection of premium investment properties.

Buyers have also enjoyed the variety of properties offered in the auction platform so far, particularly the varying price points. “The PPPA works well with buyers as they are able to shortlist a number of properties that interest them and if they are unsuccessful with bidding on one, they can then put their hand up for the next one,” said Joseph Du Rieu, PPPA Project Head. He added that buyers benefit from the strict guidelines that are followed when choosing the assets to offer in these portfolio auction because they are bidding for “the best properties in the market.”

Before the fifth PPPA event, the CBRE team through an existing relationship aligned with Zagame Ferrari to host the PPPA events at the Zagame Automotive luxury car showroom in Swan Street, Richmond. Managing Director of Zagame Group, Bobby Zagame noted that, “Initially we were motivated to host the event bescause we saw strong alignment between the two brands, as well as our client bases. Our assumption was that buyers of premier commercial investments may also have the capacity to purchase luxury vehicles. On the night, we were blown away by the way the event was run, how well it was attended and received by our clients, and the new connections we were able to form with local and Asian buyers.”

The first six (6) Auctions have achieved four (4) national commercial property records and solidified its position as a proven platform through which to sell premium investment property. The sale of Dan Murphy’s Alphington selling on a yield of 3.21% was the sharpest yield achieved for a freestanding liquor store investment and the sale of Coles Clayton is the sharpest yield achieved for a freestanding supermarket investment at 2.57%. PPPA VII was a standout so far with all 5 properties selling under the hammer, including two metropolitan Melbourne freestanding supermarkets for sub 5 per cent.

CBRE is pleased to announce the continuation of the partnership with Zagame Ferrari and excited to confirm their seventh (7th) consecutive PPPA event. PPPA VII will again be held in the Zagame Automotive showroom in Swan Street, Richmond on Thursday 25th October 2018 and will include 5 premium offerings.