Pumping country roadhouse to test auction appetite
No.50 Arve Rd, Geeveston. Picture: Supplied
WHEN the maths stacks up, investors will travel to find the right opportunity, and next week that might be this Huon Valley property.
Sol’s Roadhouse at No.50 Arve Rd, Geeveston is listed for sale with Knight Frank and Burgess Rawson and positioned about a 55-minute drive from Hobart.
Burgess Rawson senior sales executive Matthew Wright said this regional property is a “perfect first-time investment”.
“It has two tenants, a thriving roadhouse business and its fuel pumps,” he said.
“The property is expected to attract a rare 10 per cent yield.
“If an investor spent similar money on a residential apartment in Hobart or Launceston, they might get a 3 or 4 per cent return.
“But in Geeveston, you get all of your outgoings paid, so that 10 per cent is a net return.”
No.50 Arve Rd, Geeveston.
No.50 Arve Rd, Geeveston.
Sol’s has a secure new 10-year lease from 2023 through to 2033, plus options to 2043.
There is a separate lease to Bennett’s Petroleum through to 2024, plus options through to 2030, with all of the fuel infrastructure above ground.
Bennett’s Petroleum is Tasmania’s largest Ampol distributor and a multi-site operator with 16-plus sites in operation.
The 866sq m property has 30 metres of frontage to Arve Rd, which connects to the Huon Hwy, the major highway link between Hobart and the Huon Valley.
Geeveston is an apple and fruit growing region on the route to one of Southern Tasmania’s most popular tourist attractions, the Tahune Airwalk.
Sol’s Roadhouse at No.50 Arve Rd, Geeveston will be offered to market at next week’s Burgess Rawson Portfolio Auction 161 to be held at the Crown Casino, Melbourne.
No.50 Arve Rd, Geeveston.
No.50 Arve Rd, Geeveston.
While Hobart’s residential property market has slightly softened over the past year, Knight Frank commercial sales representative Tom Balcombe said investors see value in the commercial market, particularly the A Grade assets.
“We have yet to see a slow down, especially with premium stock continuing to transact well,” he said.
“There are cash positive buyers who are active in our market, and will make the most of the current conditions.”
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Mr Balcombe said there was a learning opportunity for investors who may not be aware of all Tasmania has to offer.
“Tassie really is a good market in which to invest your capital,” he said.
“People are starting to realise this more and more, and there is definitely great value here.”
Mr Wright said Tasmania’s commercial property market had been solid through the first half of the year.
“From our point of view, it has been really good,” he said.
“A prime example is the Rockwall building sale in Salamanca Pl.
“Another consideration is the land tax reform that is coming to Victoria and other states, which doesn’t apply in Tassie, but does make it more favourable.”
