This article is from the Australian Property Journal archive
A LOCAL investor has found comfort in Hobart CBD’s Freedom Furniture store, winning out from huge interest to acquire the property for $5.358 million.
The strata-titled investment at 80 Brisbane St received 94 enquiries from local, interstate and offshore parties.
It comprises a single-level 2,023sqm showroom with basement and at-grade parking for 27 vehicles across a 2,904sqm site, and sold with a 10-year lease until 2022 returning $376,000 per annum net.
The sale price reflected a 7% yield and rate of $2,649 per sqm of GLA.
Savills agents Pat De Maria and Tom Forrest sold the property in conjunction with LH Hooker’s Mark Devine.
They said the sale comes as Hobart receives a circa $2 billion development boom, which has seen the construction of new apartment buildings driven by a rapidly increasing population.
“The property could not have been placed on the market at a better time with Hobart in a rapidly evolving cheap generic viagra 100mg canada development phase which is providing exceptional growth potential for established retailers,” De Maria said.
“Retail investment nationally is currently running at $6 billion to $7 billion a year, bolstered by a high level of offshore investors – as well as local institutional and private investors –which has intensified competition and driven yield compression.
Devine said Freedom Furniture benefitted from a large main trade area accommodating nearly 50,000 residents supplemented by an additional 163,000 people across Greater Hobart.
“The property’s strong catchment added further to its substantial investment credentials, including its prime inner CBD location, the secure tenancy profile with a leading national retailer, the extensive street frontage, and on-site parking.
“The 94 enquiries reflected a strong and growing market for Tasmanian investments, especially retail, as Hobart and other key cities are bolstered by a surge in population including those priced out of mainland city residential markets,” he said.
Australian Property Journal
