Hot Tassie commercial sector to be tested under hammer
TASMANIAN commercial real estate has been a hot commodity with investors of late who have snapped up historic buildings, hotels, warehouse and hardware assets.
Investors looking for Tasmanian opportunities will be spoiled for choice at Burgess Rawson’s next portfolio auction with a number of assets going under the hammer.
Burgess Rawson senior sales executive Matthew Wright said the Tasmanian market has gone from strength to strength over the past two years.
“Tasmania now leads the country in key economic indicators,” he said.
“In fact, during the last six months, demand has outstripped supply substantially.
“We have seen plenty of investors seeking high quality assets in Tasmania but not a lot of investment stock coming to the market.”
In the south of the state, Burgess Rawson in conjunction with Knight Frank will put to market:
Shell Viva Sandy Bay, in the $3 million-plus price range
Chemist Warehouse Sorell, $3.5 million-plus
Kosaten Japanese in Battery Point, $2.1 million-plus.
A prime industrial offering in Glenorchy and a chemist in Launceston — with co-agent Shepherd & Heap — will also be sold under the hammer.
While not heading to auction, a Commonwealth Government leased call center located at Dowsing Point will be sold via an expression of interest campaign that will coincide with the Auction 146 Portfolio. EOI will close on August 26 at 4pm.
Mr Wright said mainland buyers have confidence in Tasmanian assets, especially those leased with a strong or national lease covenant.
He said the Coventry Group (Nubco) transactions from earlier this year were a prime example of this.
Knight Frank commercial sales agent George Burbury said interstate buyers view the Tasmanian market as a potential safe haven for their money.
“Investors have witnessed how well the state has, and continues to, manage the pandemic,” Mr Burbury said.
“Tasmania has contained any Covid-19 cases, and our property growth throughout the last three years has been sustained.”
On the launch of Burgess Rawson’s Auction 146 Mr Wright said they are expecting huge interest in this portfolio and in particular the assets on offer in Tasmania.
“This is due to the diversity in property type and price point,” he said.
“With pharmacy, industrial and top tier hospitality tenants and prices ranging from $1.75 million through to $4 million, national investors will have plenty of choice.”
The government property at Dowsing Point’s Technopark precinct is described as “magnificent” and set on “a significant, irreplaceable foreshore site”.
The Commonwealth Government (Services Australia) has recently exercised its three-year lease option.
Services Australia has occupied the building since it was built in 2008.
The premises has fixed annual 3.5 per cent rental increases, providing the next owner with guaranteed rental growth.
The site has about 250 seats for the call center and 185 car parking spaces.
The auctions will be held at the Crown Casino Melbourne on August 4 with bidding available in person, by phone or online.