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News release

CANBERRA

JLL sells eight properties for Tabcorp at auction for total sales value of $6,171,500 in Canberra


JLL has successfully sold eight properties in Canberra on behalf of Tabcorp for a total sales value of $6,171,500. The properties were sold via public auction by JLL's Head of Sales and Investments – ACT, Michael Heather, and Sales and Investments Regional Director – ACT, Greg Lyons.

Three properties were offered with a new initial 7 year lease term to Tabcorp with 2 x 5 year options. The remaining five properties were sold as vacant possession. The three leased properties were sold for a price range of $800,000 to $1,120,000 and reflected initial yields of between 4.71% - 5.29%. The five vacant properties were sold for a price range of $590,000 to $741,500 and reflected sales values from $5,224 - $7,234 per square metre.

Mr Heather said, "The auction was extremely well attended with over 40 registered bidders which resulted in very competitive bidding for all eight properties sold. The high level of demand for these properties was driven by the quality lease covenant from Tabcorp for 7 years for the leased properties, and the strategic locations of the vacant properties, being adjacent to major supermarkets and public car parking.

"The strong yields achieved for the leased properties exceeded market expectations and is reflective of the yield compression trend that has been experienced in other markets around Australia," Mr Heather said.

Mr Lyons said, "The strong sales results achieved was reflective of the current buyer demand and the low cost of capital. We expect this trend to continue as there is unsatisfied demand from a range of investors for securely leased and well-located properties. The results for the five vacant properties demonstrated the strong demand from owner-occupiers and adjacent property owners," Mr Lyons said.

The eight properties sold were:

20 Brierly Street, Weston sold for $1,120,000

20 Brierly Street, Weston offered a new initial 7 year lease term to Tabcorp with 2 x 5 year options. This property is well-located adjacent to the sub-regional sized Cooleman Court that is anchored by a Woolworths supermarket. The initial yield reflects 4.78% on the passing net income of $53,491 per annum.

30 Denigan Street, Wanniassa sold for $950,000

30 Denigan Street, Wanniassa offered a new initial 7 year lease term to Tabcorp with 2 x 5 year options. This property is well located, close to the Erindale Shopping Centre that is anchored by a Woolworths supermarket. The initial yield reflects 5.29% on the passing net income of $50,252 per annum.

99-103 Georgina Crescent, Kaleen sold for $800,000

99-103 Georgina Crescent, Kaleen offered a new initial 7 year lease term to Tabcorp with 2 x 5 year options. This property is located close to the Kaleen Plaza Shopping Centre that is anchored by a Supabarn supermarket. The initial yield reflects 4.71% on the passing net income of $37,677 per annum.

56 Hawker Place, Hawker sold for $670,000

56 Hawker Place, Hawker was offered as vacant possession. This property is well located within the Hawker shopping precinct that is anchored by a Woolworths supermarket. The price reflected a capital value of $5,781 per square metre.

1-3 Primmer Court, Kambah sold for $741,500

1-3 Primmer Court, Kambah was offered as vacant possession. This property is well located close to the Kambah Village Shopping Centre that is anchored by a Woolworths supermarket. The price reflected a capital value of $7,234 per square metre.

23 Charnwood Place, Charnwood sold for $600,000

23 Charnwoord Place, Charnwood is offered as vacant possession. This property is well located within the Charnwood Shopping Centre that is anchored by a Woolworths supermarket. The price reflected a sales value of $5,545 per square metre.

55 Curtin Place, Curtin sold for $700,000

55 Curtin Place, Curtin is offered as vacant possession. This property is well located within the Curtin Shopping Centre that is anchored by a Coles supermarket. The price reflected a sales value of $5,224 per square metre.

71 Mawson Place, Mawson sold for $590,000

71 Mawson Place, Mawson is offered as vacant possession. This property is well located within the Southlands Shopping Centre that is anchored by a Woolworths supermarket. The price reflected a capital value of $6,556 per square metre.

The public auction took place on Thursday 26 November 2015.