Zap Fitness: Prime Devonport site flexes market muscle
No.44 and 52 Stewart St, Devonport. Picture: Supplied
A large Devonport CBD corner property with multiple street frontages has caught the eye of investors.
No.44 and 52 Stewart St has been extensively renovated, and the tenant, Zap Fitness, has renewed its lease currently through 2032.
Nicholas Bond, Elders Commercial’s head of commercial sales in Northern Tasmania described the property as a “trophy asset”.
Mr Bond said Zap Fitness is owned by Fitness & Lifestyle Group (FLG), Asia Pacific’s largest group of corporately owned health and wellness clubs with 330 locations across four countries.
It has 585,000 members, he said.
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No.44 and 52 Stewart St, Devonport.
No.44 and 52 Stewart St, Devonport.
No.44 and 52 Stewart St, Devonport.
“Zap have been in occupation for about 16 years, with No.52 Stewart extensively renovated for them in 2009, prior to their expansion next door in 2017-2018,” Mr Bond said.
“The Zap site in Devonport is on a high-profile corner providing three street frontages, sought after CBD parking on title and is located close to the Rooke Street mall.
“It is adjacent to the NAB building, which sold recently following a well-contested auction campaign achieving an initial yield of 5.6 per cent.”
The high exposure property is set on a 1014sq m lot.
There are annual 3 per cent rent reviews, the tenant pays statutory outgoings, and the net income across noth buildings is about $225,000 per annum.
No.44 and 52 Stewart St, Devonport.
No.44 and 52 Stewart St, Devonport.
Clinton O’Keefe, Elders Commercial sales and leasing manager said the North West is fast becoming the “epicentre of Tasmania’s next substantial wave of infrastructure investment”.
“This combined with the significant projects already underway is giving investors confidence to allocate capital into regional markets like Devonport where the pipeline of diversified investment is strong and the outlook for commercial assets remains robust,” Mr O’Keefe said.
Mr Bond said Zap’s recent renewal for seven years is not only a vote of confidence in the asset, but also in the city.
“Devonport CBD has benefited in recent years from significant public and private investment via the Devonport Living City Project, which delivered such projects as the 200 room Novotel developed by Fairbrother for Fragrance Group,” he said.
No.44 and 52 Stewart St, Devonport.
No.44 and 52 Stewart St, Devonport.
A number of major projects are planned or underway in the area including: Indie School CBD Campus, Devonport Quaylink Port Redevelopment, a new indoor sports stadium, proposed Stony Rise shopping centre and the proposed Devonport Health Hub.
No.44 and 52 Stewart St, Devonport is for sale by private treaty.
For details contact Elders Commercial Tasmania.
