Premium Investment appetite expected to accelerate in 2020

Colliers International are excited to witness early activity from savvy investors seeking Premium Investment opportunities. These highly anticipated trophy assets have been of interest for astute investor portfolios in previous years and we expect this appetite to accelerate in 2020.

Colliers International Metro Sales team recorded 119 premium investment transactions in Victoria for 2019, totaling almost $365 million worth of sales.

Activity was most prominent in the Metro region with investors competing for service stations, banks and fast food assets. The average yield for premium metro assets was 5.27%, whist regional assets achieved an average yield of 6.4%.

Despite a 60% decrease in activity from 2018, where 278 properties transacted at over $2.1billion, premium investments were still considered a lucrative investment. In fact, appetite for these assets saw Victoria receive a 70% clearance rate, and we expect these results to surpass this in 2020.

The tightening in the market last year was a result of political uncertainty and the financial services royal commission. With both of these events now long gone, investors have re-emerged with aggressive mandates for commercial investments with long term leases.

What does 2020 look like for Premium Investments?

We forecast increased activity in 2020, from both buyers and sellers as a result of low interest rates and easier access to funds. Assets such as childcare facilities, banks, fast food retailers, supermarkets and service stations are expected to be in high demand.

Ben Baines and Ted Dwyer have recently listed 83 Oakleigh Road, Carnegie a premium childcare investment, leased to National tenant Goodstart Early Learning, which is generating substantial early interest with 40 enquiries in 3 days

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83 Oakleigh Road, Carnegie, features in Colliers International’s Premium Investment Portfolio running between 2nd - 6th March 2020.

The Colliers International National Portfolio takes place over five weeks throughout the year. Designed to amplify enquiry for your premium asset and uncover buyers from across Australia. Your asset will be featured alongside some of the most recognised brands in the country.

If you are looking to sell your Premium Investment this year or if you would like more information, please contact one of the Melbourne Metro Premium Investment Experts or visit PIAUCTIONS.COLLIERS.COM.AU

Our next portfolio week will take place on 11-15th May. Booking closes 5 April.

Click on the link to read more.


Related Experts
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Ted Dwyer

Director | Melbourne Metro Sales

Melbourne East

Commencing my Commercial Real Estate career in 2009 I am responsible for the co-management of the Metro Sales Team. I throroughly enjoy assisting my diverse range of clients from both the private and institutional sectors with all of their property requirements.

 

Through my role of extensive relationship management I thrive in assiting my clients with both sale and purchase mandates and love the chase of an off-market deal that makes everbody winners.

 

I specialise in selling investment and development grade assets throughout Metropolitan Melbourne between $2 - $15 million. I possess an enviable track record in the city-fringe and inner norhtern suburbs in particular.

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Ben Baines

Associate Director | Melbourne Metro Sales

Melbourne East

I specialise in the sale of commercial office, premium retail investments and development site sales in the Melbourne Metropolitan market. With an enviable database and track record, I have a major focus in the city fringe, inner eastern and south eastern suburbs.

Actively involved in the real estate industry from a young age, I have created a reputation for providing excellent customer service whilst delivering the best possible results.

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