Hobart TAB auction to ‘go bananas’

A TAB building in Glenorchy is set to be sold at auction in December. Picture: Supplied

TWO desirable Tasmanian properties will be among the 74 to be sold under the hammer this month at a three-city set of portfolio auctions.

This comes as a Subway in the north of the state fetched an above expectation sum at the previous Burgess Rawson auction event.

No.375A Main Rd Glenorchy and No.21 Merino St, Kings Meadows are home to TAB and Superior Food Services.

The last Burgess Rawson portfolio auction will be held in Mid-December.

Burgess Rawson partner Raoul Holderhead expects both to be hotly contested under the hammer.

Mr Holderhead said the TAB could “go bananas” at auction.

“It could fetch somewhere around the $650,000 range,” he said.

The TAB has been set in a prime Main Rd position — opposite a Domino’s and surrounded by national brands — for the past 20 years.

It is described as an entry level investment with a net income of $36,500 per annum plus GST.

TAB has recently renewed its lease through 2024 with an option ‘til 2027.

The cold store facility is set on a 3894sq m site and supplies fast food chain giants including Domino’s, Hungry Jacks and Subway among others.

The business has a new five year lease plus options to 2030.

Its net income is $154,485 per annum plus GST.

21 Merino Street, Kings Meadows.

21 Merino Street, Kings Meadows.

At the November auctions, the Latrobe Subway was sold for $1.005 million, a yield of 4.57 per cent.

Mr Holderhead said the sale was well above expectations, which were around the $840,000-$860,000 range.

“We had 16 registered buying groups interested in the property, including three based in Tasmania.

“The buyer is an ex-Tasmanian, born and bred in Hobart but now based on the Gold Coast.

“Tasmanian assets are hugely popular with investors from all over the country.

“I would expect about 90 per cent of what we sell is purchased by people that live outside of the state.

“They recognise Tasmania as a Covid safe haven and a place with a booming economy.

“Tasmania has always provided strong yields.

“Another part of the success of this sale is Subway has been there 10-odd years and is run by one of the most experienced and successful Subway licensee in Australia.

“He has 24 stores, 10 in Tassie.”

Latrobe Subway.

The TAB and cold store assets will go under the hammer on December 15 at the Melbourne auctions, which follow Sydney on the 14th and ahead of Brisbane on the 16th. Bidding will be available in person, online and by phone.