This article is from the Australian Property Journal archive
THE government-tenanted Launceston CBD office building known as Henty House has sold for $22,525,000 to a Melbourne-based syndicator.
Purpose-built for the Tasmania government in the early 1980s, the five-level brutalist building at 1 Civic Square is today occupied by the state departments of Health and Human Services, Justice, Treasury and Finance, Premier and Cabinet, Police, Fire and Emergency Management, in addition to the federal government on a new 15-year term. It has a weighted average lease expiry of more than six years.
Sydney-based property investment company Strada Group put the 4,678 sqm building to the market earlier this year with expectations of a sale result in the 6% to 6.5% range. Current return from Henty House is more than $1,523,000, suggesting a yield just a fraction above that.
Henty House is located in the central Civic Precinct near Royal Park and the Tamar River waterfront on a 2,517 sqm site.
CBRE’s Tom Ryan and Scott Orchard jointly negotiated the transaction with Tim Johnstone and Scott Alexander of Hobart-based agency Edwards Windsor.
Ryan noted that despite current market uncertainties buyers were continuing to pursue quality investment opportunities.
“There is no question that buyers are reassessing their strategies and expectations following the significant change to the interest rate landscape. However, while the depth of interest has reduced, there is continued confidence in the market and solid transaction outcomes are occurring led by investors wanting to stay ahead of an anticipated buyer resurgence in the new year.”
Orchard said that while sale results have been limited through the middle part of the year as a market adjustment plays out, there is still considerable local, national and international capital looking for opportunities in prime and alternative markets.
