This article is from the Australian Property Journal archive
IN one of Hobart’s biggest commercial property plays in recent times, prominent Tasmanian businessman Robert Rockefeller has quietly sold the ANZ Centre in the CBD for more than $50.3 million to a Charter Hall fund.
The transaction also represents the latest in a string of plays by landlords of key sites along the city’s Macquarie Street.
Documents obtained by Australian Property Journal show the 14-level, A-grade commercial tower of 10,703 sqm, at 22-26 Elizabeth Street and 103 Macquarie Street, opposite Franklin Square, was sold by Rockefeller’s family company Nekon Pty Ltd for $50,303,782.
APJ contacted Charter Hall for comment.
It is primarily leased to the Tasmanian state government with a 12-year WALE, and includes a five-level heritage building, ground floor retail and parking, and is integrated with a two-storey heritage building fronting Macquarie Street.
The tower was purchased by the acquisitive Charter Hall Direct PFA Fund, and is held by Trust Company Limited as trustee. The PFA Fund recently picked up the Capital Hill building at 85 George Street for $60 million and the 11-storey 40 Tank Street office building for $93.0 million, both in Brisbane, alongside its sister the Charter Hall Long WALE REIT.
The PFA Fund typically targets assets leased to government and higher quality corporate tenants.
US-born Rockefeller also holds the Trafalgar Centre in the Nekon vehicle. Within his portfolio is the home of major Hobart newspaper The Mercury at 2 Salamanca Place, and he is a part-owner of the old Marine Board Building at 1 Franklin Wharf through the Newtown Rockets company.
Recently, he was reported as the buyer of failed investment scheme Aussie Cherries, which owns 43 hectares of cherry orchards in the state’s Huon Valley.
In 2013, he sold off seven Tasmanian shopping centres to SCA Property Group for $145.7 million, including six Hobart suburban shopping centres and one in Launceston, each with long-term leases to one of Coles, Kmart of Woolworths.
The sale of 103 Macquarie Street comes as another state government-tenanted building on main CBD thoroughfare is put to the market. The refurbished 12-level A-grade office tower at number 144 has just been listed through Knight Frank and Edwards Windsor with an asking price of $15 million.
The 5,684 sqm building is on a 929 sqm site with 19 car spaces returns around $1.43 million net, which would reflect an initial yield of 9.5%, and 12% fully leased.
Zoned Central Business, it is being marketed as an “opportunity to add significant value through leasing or future asset conversion”.
On the other side of Franklin Square is the state’s government’s Department of Treasury and Finance building at 21 Murray Street, bound by Macquarie Street, Davey Street and Franklin Square, which Tasmanian Treasurer Peter Gutwein revealed in June the state intended to sell off with potential to add more than $20 million to its coffers.
Further down Macquarie Street, Singapore’s Fragrance Group has emerged as the developer that acquired the 179 Macquarie Street property in August.
Fragrance now controls nearly the entire western frontage of Macquarie Street between Harrington and Barrack Streets, except the Travelodge site.
Number 179 has approval for a 30-metre high, nine-storey hotel with 202 rooms. Fragrance, which owns the adjoining Ibis Styles Hobart hotel, had appealed against previously approved plans for a development on the site.
Australian Property Journal
