Sold: Extra $1000 gets Hobart bottle shop sale across the line
The BWS bottle shop at No.3/124 Davey St, Hobart was sold under the hammer. Picture: Supplied
THERE was a fair bit of joking about how $1000 bids ‘never work’ at a commercial asset auction in Melbourne.
But for a multimillion dollar Hobart property, it was a modest $1000 bid that sealed the deal.
The home of a BWS bottle shop at No.3/124 Davey St was sold for $6.501m at Burgess Rawson’s Portfolio Auction 162.
Agents from Knight Frank and Burgess Rawson estimate a 6.05 per cent yield.
A too-low bid attempted to get the auction underway, with auctioneer David Scholes suggesting the prospective purchaser “double it”.
The first confirmed bid was for $6m. The price was quickly pushed upward in $50,000 bids before settling at $6.25m.
“First, second …” Mr Scholes called.
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No.3/124 Davey St, Hobart.
Auctioneer David Scholes at the Burgess Rawson commercial property portfolio auctions in Melbourne.
Bidders then offered $6.3m, then $6.35m.
A vendor bid came next, for $6.5m, followed by instructions that the next highest bid would secure the high-performing property.
“I’ve got $6.501m, we are selling, it is on the market,” he said.
“Anybody else? First, second, third and final, done!”
Knight Frank hotel, motel and business consultant John Blacklow said the shop’s sale price was in line with vendor expectations.
“Cap rates have definitely softened in the last nine months, and the vendors were happy to meet the market,” Mr Blacklow said.
“Interstate-based investors generally get a better yield with Tasmanian assets, so it is not surprising that there is demand, particularly in that Tasmania continues to lead the nation in economic performance.”
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No.3/124 Davey St, Hobart.
No.3/124 Davey St, Hobart.
Burgess Rawson partner Matthew Wright described the BWS sale as a strong result in the prevailing market.
“The store is and has constantly been one of Tassie’s best performing bottle shops, it’s no surprise to see it sold for a great price,” he said.
“We had a strong inquiry level throughout the campaign and in the end there were three active bidders.
“The successful purchasers are a private Melbourne-based family. They are over the moon to secure an asset in Tasmania.
“They were drawn to the asset with the ASX-listed lease covenant in Endeavour Group along with the long record of exceptional trading, the A-grade location being close to the CBD and Sandy Bay, as well as the homebound traffic that passes by daily.”
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No.3/124 Davey St, Hobart.
No.3/124 Davey St, Hobart.
The Davey St BWS offered a secure 10-year lease to 2031, plus options to 2051.
Its triple net lease structure means the tenant pays all outgoings including land tax, rates, water, structural maintenance and insurance.
The current tenant has been trading on-site for over 26 years.
