Investors target charity-backed commercial assets
Commercial properties leased to established charities are emerging as highly sought-after investments, driven by their secure income streams and connection to the growing charity retail sector.
Many believe charity-backed assets can offer low overheads and high trustworthiness. As a result, these stores are becoming thriving retail hubs, offering investors access to a proven asset class amid growing interest in vintage and collectable items.
Recent transactions highlight the strength of the sector, with a Vinnies store in Australind, WA, achieving a sale price of $3 million on a 5.56 per cent yield. The sale was part of a larger transaction that included a Supercheap Auto store and a Salvation Army property, with the total value reaching $9.78 million.
Research by commercial real estate agent Burgess Rawson shows charity investments achieve an average sale price per square metre of $5,429, with yields averaging 5.58 per cent.
The Vinnies property showcases typical investment characteristics, featuring an eight-year lease with options and an annual income of $166,900.
Real Estate Agents in the commercial space believe both local and interstate investors are keen to capitalise on these trusted, long-standing tenants, especially in high-growth areas.
If you are looing to obtain finance for a commercial premises, contact us.
*This information is general in nature and does not take into consideration your individual circumstances. Please contact us for further information.
