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.
Burgess Rawson’s Shaun Venables said investors are increasingly recognising the value proposition of charity-tenanted properties.
“Charity-backed assets offer low overheads and high trustworthiness,” Mr Venables said. “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.
Mr Venables said market data supports the growing appeal of these assets.
“Burgess Rawson research shows charity investments achieve an average sale price per square metre of $5,429, with yields averaging 5.58 per cent,” he said.
The Vinnies property showcases typical investment characteristics, featuring an eight-year lease with options and an annual income of $166,900.
“Both local and interstate investors are keen to capitalise on these trusted, long-standing tenants, especially in high-growth areas,” Mr Venables said.
