This article is from the Australian Property Journal archive
HOBART’S Telstra Centre has sold to a mainland investor making their first purchase in Tasmania for around $35 million.
Knight Franks Richard Steedman and Scott Newton, together with Edwards Windsor, sold 66-80 Collins St in the CBD.
On a 1,720 sqm corner site opposite the Royal Hobart and Hobart Private Hospitals, and a short distance from Elizabeth St Mall, the A-grade eight-level office building has a net lettable area of around 10,037 sqm plus 55 carparks.
The building is currently 85% leased to tenants including Telstra and the state government, with a weighted average lease expiry of two years and a net annual income of $2.43 million plus GST, and traded at an initial yield of around 7.0%.
The agents said the property was sold via a two stage expressions of interest process, with more than 90 enquiries during the campaign and eight offers received. They said the sale price reflected a rate of $3,502 per sqm of net lettable area.
“The property was purchased by a mainland property investment group new to the Hobart market,” they said.
“Over the past 18 months, Hobart has seen a number of assets purchased by parties new to our market as investors continue to search for opportunities outside of the major capital city markets.
“Major investment groups are very keen to enter Hobart’s commercial property market which continues to transition into a modern day, 24/7 city and as a result has been leading the nation in growth in recent years.”
Melbourne-based Pentagon Group paid about $30 million in June for the EBC Hotel & Leisure Fund’s Tasmanian hotel portfolio, which includes the Foreshore Tavern in outer Hobart.
In April, another Melbourne investor picked up the 3.027-hectare A.P. Eagers car dealership site in Derwent Park for more than of $10 million, while KordaMentha Funds Management acquired the home of Hydro Tasmania near Hobart Airport in Cambridge for $25 million from Growthpoint Properties Australia.
Last year, prominent Tasmanian businessman, US-born Robert, Rockefeller quietly sold the 14-level, A-grade ANZ Centre at 22-26 Elizabeth Street and 103 Macquarie Street in the CBD to a Charter Hall fund, while Charter Hall paid more than $27 million for the Mornington Bunnings warehouse on South Arm Hwy in Hobart’s north-east, in an off-market sale and leaseback deal.
Singapore’s Fragrance Group emerged as the buyer of the former Myer store site at 179 Macquarie St the CBD, which sold with approval for a 30-metre high, nine-storey 202-room hotel.
A Melbourne-based private investor bought the Supercheap Auto showroom in Hobart’s Rosny Park for $4.138 million at a yield of 5.46%.
