Latrobe sandwich specialist to be sold under the hammer
INVESTORS are ready to take a bite of Tassie’s food industry with a well-established sandwich eatery hitting the auction block this week.
No.92 Gilbert Street in Latrobe, near Devonport, will feature at the 148th Burgess Rawson Investment Portfolio Auction, and Burgess Rawson partner Raoul Holderhead expects the significant interest in the property will lead to an excellent result.
“There has been a huge amount of interest as soon as the property was launched. We’ve had in excess of 140 inquiries already,” Mr Holderhead said.
“It is difficult to say if the property will be purchased by a local or interstate investor. Inquiry has been pretty evenly split at this stage.”
The restaurant is one of 10 Subways in Tasmania and has been successfully operating for a decade.
It offers investors a new seven-year head office lease to Subway Pty Ltd with multiple five-year options potentially taking the lease into the 2030s or even the 2040s.
The Gilbert St site measures 456sq m and has triple frontage, including Station Square and a council carpark.
Its main road position puts it near numerous other popular businesses and services, including BWS, IGA Supermarket, Australia Post, Vinnies, CBA, the Reject Shop, Mitre 10, a pharmacy and a dentist.
The property includes a two-bedroom residential tenancy at the rear of the building with a long-term occupant.
Per the lease, the tenant will be responsible for outgoings and there are fixed 3 per cent increases in place, which assures rental growth.
In recent years, Tasmanian commercial property has been hugely popular at the Burgess auctions.
Mr Holderhead said they were “certainly seeing a consistently high level of interest” for Tasmanian commercial property.
“Investors are drawn to the stability of the local economy and strength of the property market.
“And of course, high-profile fast food brands like Subway are always coveted.”
Subway is the world’s largest restaurant chain with in excess of 40,000 stores.
Alongside No.92 Gilbert, investors will vie for the chance to buy 80 properties at this week’s auctions across three cities. The Melbourne auction starts at 11.15am on Thursday.
The Tasmania Subway is listed for sale with Burgess Rawson and Shepherd & Heap.
Bidding will be available by phone, online or in person at the Crown Casino in Melbourne.