Devonport Petbarn, Vinnies site ready for auction action
AUCTION: No.1-3 Finlayson Way, Devonport. Picture: Supplied
The home of Petbarn and Vinnies in Devonport is set to be auctioned next week.
Listed for sale with Elders Commercial and Burgess Rawson, the property is situated at a key location with frontage to one of the city’s major thoroughfares.
These immediately recognisable Formby Rd businesses are close to complimentary large format retail and fuel developments nearing completion for OTR, Total Tools, RSEA Safety and Barbeques Galore.
The property incorporates two showroom buildings totalling 807sq m of floor area on a 2295sq m site. It boasts a valuable 81m of frontage to Formby Rd.
Petbarn and Vinnies Tasmania have long-term leases to 2030 and 2028, both with options.
They generate an estimated net income of $166,809 per annum, plus GST.
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No.1-3 Finlayson Way, Devonport.
No.1-3 Finlayson Way, Devonport.
Well established, Petbarn has operated from this site for about 17 years.
Petbarn has a national network of 140 sites, and is owned by Greencross Vets, a subsidiary of NASDAQ-listed TPG Capital, Australia Super and Ontario Pension Plan.
St Vincent de Paul was established in 1833, and is regarded as Australia’s leading national not-for-profit organisation, with 24 stores across Tasmania.
Nicholas Bond, Elders Commercial head of commercial sales Northern Tasmania, said they believe investors will seek out this asset.
“Not only due to the strong net leases in place, but also due to the robust large format retail leasing fundamentals being experienced locally as well as the significant infrastructure and property development planned and underway in Devonport, including the $493m port redevelopment,” he said.
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No.1-3 Finlayson Way, Devonport.
No.1-3 Finlayson Way, Devonport.
Burgess Rawson partner Matthew Wright said, for investors, the property sits in an attractive price range, with an expected yield in the 6-6.5 per cent range.
He said investors also see the dual income of two tenants as advantageous.
“Devonport is a major freight and tourism transit point for Tassie; it drives the economy in this region — that is favourable for a lot of investors,” he said.
“Generally, investors look at two things: the tenant covenant and location.
“There’s no difference when leasing to Petbarn in a metro or regional location, it’s the same tenant. So there may be an advantage in a lower price point in Devonport compared to comparable assets in a larger city.”
No.1-3 Finlayson Way, Devonport.
No.1-3 Finlayson Way, Devonport.
Elders Commercial sales and leasing manager Clinton O’Keefe said the high-profile nature of this property and its exposure to 10,000 vehicles daily has resulted in the site experiencing “incredibly strong tenure”.
“The property has proven to be strong performing, with Petbarn being tenants on site for 17 years and Vinnies joining the site in 2024 post the relocation of a former tenant after 10 years,” he said.
George Wilkinson, sales executive at Burgess Rawson, said there is heightened investor interest in Tasmania.
“Particularly in assets like this that combine strong tenant covenants with exposure to key growth markets,” he said.
“The Devonport listing exemplifies the type of opportunity that aligns with current market demand.”
Petbarn and Vinnies, No.1-3 Finlaysons Way, Devonport is offered for sale by Investment Portfolio Auction, which will be held on Wednesday June 25 at Crown Casino, Melbourne.
