This article is from the Australian Property Journal archive
HOBART’S Village Cinemas complex has netted its vendors a blockbuster price of $33 million, more than double what they purchased the CBD site for in 2010.
The landmark site of 6,088 sqm at 179-183 Collins Streets comprises the seven-cinema Village complex on a nine-year lease, tenants Colony 47 and Zone 3 laser tag, and a 428-bay multi-deck car park, for a total building area of 5,675 sqm.
It sold at a 7.2% yield, returning $2,439,399 per annum net with a circa six-year WALE.
Kalis Cinema Complex Pty Ltd acquired the property seven years ago for $16 million, and had undertaken refurbishments in that time.
Knight Frank’s Hayden Peck, Scott Newton and George Burbury negotiated the sale.
Zoned Central Business, the property sold with no heritage restrictions.
The sale puts an exclamation point on a big year of landmark central Hobart properties changing hands.
Singapore’s Fragrance Group reportedly settled on its purchase of the UTAS Conservatorium on Sandy Bay Road in June for $13.37 million, with UTAS leasing the site for the next three years before moving to the $96 million Hedberg performing arts centre on the corner of Bathurst Street and Argyle Street. It acquired the property for $2.6 million in 1991.
Also mid-year, the Trustee House building at 114-116 Murray Street in the CBD sold for $6.155 million. The multi-level office building of 1,993 sqm is on a 1,013 sqm site and is leased to Public Trustee, TASCORP and Wise Employment.
That came shortly after the National Trust-listed Ash Bester building at 98-102 Elizabeth Street transacted for $4.525 million.
The historic property was originally the site of the Old Hobart hotel, and was rebuilt in the 1850s following a fire for a local chemist operated by Ash and Bester.
It sold with the ground floor tenanted by Ellie’s Bistro and Vita Nature + Culture and office space above, with the former stables at the back of the property used as a luxury townhouse.
Last summer, the Freedom Furniture store at 80 Brisbane Street sold for $5.358 million at a 7% yield, with a 10-year lease until 2022.
Australian Property Journal
