safeway cip from burgess rawson

[long88]

hi all,

just want to ask for everyone opinion on recent offloading of some considered to be good cip portfolio from burgess rawson.

example here is

http://melbourne.burgessrawson.com....&f_st=1&f_ct=2&f_ps=6&f_propertyType='Retail'

and also a lot of safeway across different states, with sales result of 5%-8% net yield from selling price.

one that caught my eye is this: http://melbourne.burgessrawson.com....f_st=1&f_ct=2&f_ps=6&f_propertyType='Offices'

with only 5% yield. should the buyer just get on residential ? or is this the case of paying too much on the auction ?

thoughts ?

 

[Aaron_C]

5% in a regional town with low population....no thanks. You basically won't get any funders apart from the Big 4 so the yield is pretty moot.

 

[long88]

hi arron,

i agree with the low yield, but how can the buyer pay so much for the place ? what is he thinking ?

5% in a regional town with low population....no thanks. You basically won't get any funders apart from the Big 4 so the yield is pretty moot.

 

[Aaron_C]

hi arron,

i agree with the low yield, but how can the buyer pay so much for the place ? what is he thinking ?

I honestly have no idea. I've seen lots of crazy prices for commercial properties - but maybe they know something you/me don't. For example, in the Melbourne CBD there was a 40 sqm shop on the corner of Swanston and Collins Street that sold for $9.5m.

This was a strata titled, ground-floor only shop, mind you. Rental yield was 5%.

 

[jingo]

hi all,

just want to ask for everyone opinion on recent offloading of some considered to be good cip portfolio from burgess rawson.

example here is

http://melbourne.burgessrawson.com....&f_st=1&f_ct=2&f_ps=6&f_propertyType='Retail'

Does anyone know what this Iga store sold for?

 

[long88]

jingo, i saw the result like 2.3 or 2.4 (cant remember, and cant find the email), but it only represent about 5% gross. and a lot of cip now are sold at 5%

a lot of people with a lot of money out there currently.

Does anyone know what this Iga store sold for?

 

[lizzie]

Crazy when you can pick up a well located resi, in a large sustainable town with a 7%+ yield.