Auctions Drive Competition Across SA Commercial
Sellers are utilising the auction process to capitalise on investor interest in commercial assets throughout South Australia since mid-year.
LJ Hooker Commercial Adelaide recently sold four mixed-tenancy commercial assets under the hammer, from the inner-city suburbs of St Peters and Campbelltown to the regional hubs of Gawler East and Victor Harbor.
LJ Hooker Commercial Adelaide co-Principal Mario Bonomi said sub-$10m assets with diverse tenant mixes were attracting strong interest from high-net-worth investors and syndicates.
“We’re still seeing strong interest for commercial properties in suburbs and townships that attract strong levels of passing traffic,” said Mr Bonomi.
“Auctions are driving strong levels of interest and urgency, soliciting offers before, on the day, or in post auction negotiations.”
As is common in most Australian markets, industrial properties have been the standout performer amongst commercial assets in South Australia.
But Mr Bonomi said retail and office assets that had quality tenants were still attracting interest from local and interstate investors, drawn by healthy yields.
“Properties that are in the sub-$10m market, and typically don’t require lengthy due-diligence from buyers, are performing particularly well at auction, delivering some premium outcomes for sellers,” he said.
“Investors see value in Adelaide and the regions and we’re helping sellers capitalise on that sentiment through auctions.”
Recent auction success for LJ Hooker Commercial Adelaide included:
• 199-201 Payneham Rd, St Peters – A mix of five tenancies on a 703sqm corner site with 22.8m frontage to the high traffic road. Sold for $2.03m on a passing yield of 3.8%.
• 567 Lower North East Rd, Campbelltown – A GP clinic with eight consulting rooms, two waiting rooms, a reception and surgery. The site has exposure to 40,000 passing vehicles per day. Sold for $1.95m at 5.2% for the balance of the lease term (tenant vacating within 12 months).
• 69-73 Ocean St, Victor Harbor – A mixture of retail and office tenants at the gateway to Victor Harbor’s shopping strip. The corner site encompasses 463sqm Sold for $1.45m on a passing yield of 6%.
• 49-51 Cheek Ave and 4 Hurst Rd, Gawler East – Two adjoining buildings with eight tenants across 10 shops. Collectively, the site extended over 5,314sqm. Sold for $2.4m on a passing yield of 6.9%.
For further information contact Mario Bonomi at LJ Hooker Commercial Adelaide on 0412 080 993.