Hobart COPE Freight site acquired by investor

No.229 Kennedy Dr, Cambridge. Picture: Supplied

THE Hobart home of an independent specialist sensitive freight carrier has been sold for an undisclosed price.

Knight Frank took three logistics properties to market across Australia, all leased to COPE Sensitive Freight, and sold them in post-auction negotiations.

Alongside the Hobart property at No.229 Kennedy Dr, Cambridge, the agency also sold properties in Cairns and Darwin.

The portfolio of three assets sold for a combined yield of 5.24 per cent on the net passing income.

COPE will be an owner occupier of the Cairns and Darwin properties after being the successful purchaser at the Portfolio Auction.

The purpose-built logistics depot in Hobart, which consists of a 1223sq m building on a 3956sq m site, was purchased by a local investor from GPT Group following a campaign run by Tom Balcombe and Scott Newton.

No.229 Kennedy Dr, Cambridge.

No.229 Kennedy Dr, Cambridge.

Mr Balcombe said the Hobart property attracted investors due to the strength of the national covenant, long WALE and its location in proximity to the Tasman Hwy, Hobart International Airport and Hobart CBD.

“The sale results and the yield demonstrate the continued confidence by investors in industrial and logistics assets, particularly for those with a strong covenant,” he said.

“Hobart’s industrial market has performed exceptionally well in recent years mainly due to strong and sustained demand and lack of new stock becoming available, which we will continue to experience for the remainder of 2022 into 2023.”

The Cambridge property is located 13km from the Hobart CBD, with excellent highway connections. Its net income per annum is $137,650 plus GST.

No.229 Kennedy Dr, Cambridge.

No.229 Kennedy Dr, Cambridge.

Mr Balcombe said with industrial land prices almost doubling throughout Covid and building rates the way they are, new development of this type of asset “are not feasible in today’s environment”.

“The site layout, minimal owner contributions, double net lease and opportunity for further on-site development were the key attractions to prospective buyers throughout the campaign,” he said.

“COPE Sensitive Freight is Australia’s largest independent specialist sensitive freight carrier, with depots in all capital cities and major centres.”

Mr Balcombe confirmed that more national portfolio auctions will be scheduled for the future, including one in December.