This article is from the Australian Property Journal archive
KEMP & Denning has confirmed a sale price of $30 million for its Hobart CBD hardware store site to the University of Tasmania, which will use the 1.18 hectare holding for student accommodation.
In one of the biggest Hobart commercial property offerings in recent memory, the near-entire city block at 103 Melville Street and 159-163 Harrington Street, with frontages to Brisbane and Murray Streets, had been listed with expectations of around $25 million through Knight Frank’s Scott Newton and Hayden Peck.
The site has an existing building area of 6,374 sqm across multiple structures that were developed in the mid 1980s, as well as 120 parking spaces, and was offered with a two-year leaseback from settlement to allow for planning and development approvals to be obtained. A proposal to increase the height limit and density on the site has been put forward.
The University will develop the new facility alongside its investment consortium Spark, and has existing accommodation projects of 446 beds on the corner of Elizabeth and Melville Streets, and of 420 beds next door.
Kemp & Denning confirmed the sale price in a letter to shareholders this week, after the sale settled on Monday. Chairman Greg Goodman said the business intends to continue operating over the two-year period.
The company was established in 1902 and has closed stores in Cambridge, Devonport, Glenorchy and Kingston over recent years, and had sold its Mitre 10 interests to Tasmania Hardware.
Another historic Tasmanian business, furniture retailer Coogans, is looking to sell sites at 79-81 in the Hobart CBD and at 80-82 Main Road in Moonah, with expectations of a combined $15 million. The 143-year old business will close down in June after operations were consolidated to Moonah earlier this year, having traded from Collins Street since 1912. Its Launceston store closed in 1978.
The Collins Street building comprises three levels of retail and commercial space plus a basement level for a total area of 2,408 sqm, while the Moonah site covers 6,700 sqm and has a showroom, warehouse and loading dock building of 5,901 sqm and 97 on-site parking spaces.
Meanwhile, Tilford listed the 9,365 sqm its Brisbane Street city car dealership site in April, where it has been since 1966. The site itself has been used as a dealership since 1933, and is offered with a leaseback to Tilford of 10 years with a 10-year option.
Australian Property Journal
