Woolworths supermarkets headline CBRE’s sixth Premium Property Portfolio Auction

As in Australian Financial Review

CBRE has confirmed the line-up for its next Premium Property Portfolio Auction (PPPA), which will include two freestanding Woolworths supermarkets in metropolitan Melbourne.

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:

Woolworths Burwood East, Victoria

Woolworths Scoresby, Victoria

Veolia Brooklyn, Victoria

KFC Eagleby, Victoria

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.