Strong inquiry ahead of Tassie supermarket building sale
THIS “once in a generation” Eastern Shore property has had one owner for decades but now it is available to purchase.
Since hitting the market, No.6 Franklin Street — home to Woolworths, the only supermarket in the area — has attracted investor inquiry from people in Tasmania and interstate.
And it is clear why this Lindisfarne asset is highly prized by investors with multi-millions to spend.
The supermarket services 6174 local residents and there’s almost no possibility of a competitor entering the local catchment.
Woolworths is regarded as a “pandemic proof” tenant and this property’s current lease runs through to 2032.
Knight Frank’s Claude Alcorso said the campaign has attracted interest from a broad range of potential buyers.
“Inquiry has been very strong,” he said.
“It is a rare asset, something like this does not come to market often.
“Before it became a Woolworths, the property opened as a Purity supermarket in 1964 and it has been owned by one family through almost six decades.
“In Hobart we do see some substantial off-market commercial property deals, but not supermarkets.
“In recent memory, I can’t think of another supermarket that has sold here.”
No.6 Franklin has a 1160sq m building area on a 2066sq m site, about 14 minutes’ drive from the centre of Hobart city.
The location is in the heart of Lindisfarne’s bustling shopping village and nearby pharmacies, bakeries, a dentist and medical centre, restaurants, yacht club, football club, a bottle shop, newsagency and a gourmet butcher.
Mr Alcorso described No.6 Franklin as a first-class “set and forget” asset.
“The eventual buyer will have 30-odd years of income to come,” he said.
“They might buy it now and pass it along to their children later, or perhaps a group of people will purchase it as a syndicate. That remains to be seen.
“A big thing for interstate buyers is purchasing a supermarket over there may cost them two or three times what this property in Lindisfarne will sell for.
“They would not often find an outstanding opportunity to buy a freestanding asset like this one.”
In recent years, Tasmania’s commercial real estate market has been extremely popular with local investors and interstate investors as well.
Mr Alcorso said to see Tasmania recognised on the national stage was another tip of the hat to the local economy.
He said Tasmania has maintained a stronghold as Australia’s best performing economy topping the charts quarter after quarter in CommSec’s State of the State’s report.
“To achieve the level of interest that we have from the mainland in some of the assets we have sold recently, that is telling about just how strong a position our economy is in,” he said.
“Often we are selling a property but also spruiking our state, too.”
No.6 Franklin Street, Lindisfarne is for sale by expressions of interest closing in early December. It is listed with Knight Frank, contact Hayden Peck or Claude Alcorso for details.