Agricultural Society calls time on Glenorchy Bunnings site ownership

The Royal Agricultural Society of Tasmania is set to sell the 4ha site on which the Glenorchy Bunnings Warehouse was built.

The property, which will be sold at auction on December 12, offers an “extremely rare” 25-year triple net lease to the retailer until 2040, plus a 25-year option.

A triple net lease requires the lessee to pay rent plus real estate taxes, building insurance and maintenance.

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RAST chief executive Scott Gadd says the decision to sell the parcel of land is in line with the society’s strategic direction.

He says the auction is expected to generate significant funds for the showground redevelopment plans.

Scott says the 3.8ha site, which has been owned by the society since 1905, has always been larger than required for society activities such as the Royal Hobart Show.

The Royal Agricultural Society of Tasmania is selling a Bunnings-leased site at Glenorchy.

He says the not-for-profit organisation has identified a mix of development opportunities that will propel the RAST into new directions without compromising the delivery of events such as the Hobart Show.

“The parcel of land leased to Bunnings is surplus to the requirements of the society,” Scott says.

“The most buoyant property market in decades in Hobart makes the disposal of the land a timely move, together with the strategic locality of the site on a major intersection with easy access to the Brooker Highway — Hobart’s main northern outlet — and nearly 400 carparking spaces onsite.”

The property is listed with Knight Frank and Burgess Rawson.

Knight Frank sales and leasing consultant Matthew Wright says the property is “a very exciting and rare property to be bringing to the market”.

He describes the offering as blue-chip.

The Bunnings at Glenorchy in Tasmania.

“In relation to the tenant, you have one of Australia’s best retailers, Bunnings [Wesfarmers Ltd], on a triple net lease with all obligations lying with the tenant,” Matthew says.

“With fixed 3% increases for the next 25 years, coupled with future development of the surrounding area, this is an outstanding investment.

“We have not seen a property generate as much interest as this one in a long time.

“Interest has been local, national and international.

“Tasmania and particularly Hobart has an amazing appeal to the wider property market across the globe. People see it as a very attractive place to purchase property and park money in at present.”

This article from The Mercury originally appeared as “RAST set to sell 4ha Bunnings Warehouse site in Glenorchy”.