Dessert empire’s Salamanca jewel hits auction block
San Churro at No.5 Salamanca Square, Battery Point is heading to auction. Picture: Supplied
Battery Point assets come to the open market only rarely, and this one has a new 10-year lease.
San Churro’s home in prestigious Salamanca Square comes with a lease extending to 2034, plus one additional five-year option, providing investors with long-term income security.
Senior director at Burgess Rawson from CBRE, Matthew Wright, said properties in Salamanca Square are “extraordinarily tightly held”.
“This is Tasmania’s pre-eminent hospitality and entertainment precinct and an absolute tourist mecca — opportunities to secure assets in this location are highly coveted and rarely transacted,” he said.
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San Churro.
San Churro.
George Wilkinson, sales executive, is expecting the property to be hotly contested when it is put under the hammer this month.
“With a new 10-year lease and a strong national brand presence, this investment offers strong income and a strategic foothold in one of Tasmania’s most iconic waterfront locations,” he said.
San Churro, the established chocolate and churros franchise founded in 2004, now operates 70 stores nationally and represents a stable tenant for the investment.
In Battery Point, the lease structure includes CPI plus 1 per cent annual rent reviews, ensuring consistent income growth for investors.
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San Churro.
San Churro.
The property operates under investor-preferred net lease terms, with the tenant responsible for usual outgoings, including land tax.
The modern and well-presented 127sq m retail shop has undergone a recent fit-out to San Churro’s latest layout and design standards.
The location benefits from Hobart’s tourism sector, with visitors contributing over $1bn annually to the city’s economy.
Neighbouring Salamanca Market stands as Tasmania’s most visited tourist attraction, drawing between 800,000 and one million visitors annually.
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San Churro.
Battery Point’s prestigious location, situated just 600m from the Hobart CBD, boasts a median house price of $1.4m, reflecting the area’s desirability as one of Hobart’s most sought-after residential precincts.
This investment opportunity offers a net income of $132,700 per annum plus GST, positioning it as an attractive proposition for investors seeking exposure to Tasmania’s thriving hospitality and tourism sector.
Burgess Rawson from CBRE will offer San Churro at Battery Point to the market via Portfolio Auction on October 22 October at 10.30am at the Crown Casino, Melbourne.
