Bellerive Dan Murphy’s, Fernwood Fitness to fetch eight-figure price

The Dan Murphy’s and Fernwood Fitness building at Bellerive in Hobart is heading to auction in August. Picture: Supplied

IDEALLY located on Hobart’s Eastern Shore, this Percy St property is primed to be a standout at auction.

No.10 Percy is anchored by Tasmania’s newest Dan Murphy’s, and long-running health centre Fernwood Fitness. Burgess Rawson agents expect it to fetch a price in the $11m range.

Across the river in Hobart, the high-performing Davey St BWS is also set to be sold under the hammer.

Both properties are listed with Knight Frank and Burgess Rawson.

Dan Murphy’s at No.10 Percy St, Bellerive.

Dan Murphy’s at No.10 Percy St, Bellerive.

Knight Frank’s John Blacklow, George Burbury and Matthew Wallace said when top quality, blue-chip assets such as this come to market, potential investors are quick to inquire.

“There’s no one that comes close to Dan Murphy’s or BWS in the bottle shop environment,” Mr Blacklow said.

“Dan Murphy’s Bellerive opened in December 2022, in the former indoor cricket centre site.

“It has been expanded and transformed into a sensational store.

“The presentation is fantastic.”

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Fernwood Fitness in Percy Street.

The 2126sq m Dan Murphy’s has a 10-year current lease plus options to 2072. Fernwood Fitness is also on a 10-year lease, with options out to 2042.

Fernwood has been located at this site for 17 years and is part of a network of 70-plus clubs throughout Australia.

The combined net annual rental is estimated at $520,000, which factors in anticipated future income growth as the new Dan Murphy’s matures and continues to perform strongly.

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The Bellerive property is owned by private fund manager and developer, Key Capital.

Burgess Rawson’s Matthew Wright, Shaun Venables, Beau Coulter and Zomart He describe Dan Murphy’s location as a “strategic position” in the picturesque and fast-growing suburb known internationally as the home of Bellerive Oval.

The BWS bottle shop at No.3/124 Davey St, Hobart is set to be sold at auction in August.

Dan Murphy’s is owned by the ASX-listed Endeavour Group, which owns 339 ALH hotels and 1643 Dan Murphy’s and BWS stores.

Mr Wright said the property provides substantial tax saving depreciation, adding that, “it is home to only one of the three Dan Murphy’s located in Tasmania.”

“These assets are highly sought after and transact on tight yields,” he said.

“Investors seek security and will find this asset highly appealing.”

Mr Venables said the property provided a secure, set-and-forget opportunity with the asset shaping up to be a solid trading performer.

“Tasmania is one of few states in the country where supermarkets aren’t permitted to sell alcohol,” he said.

“This Dan Murphy’s doesn’t have to compete with the same competition they do in other states.”

Over 31,000 cars pass by this store every day.

Mr Venables added that Dan Murphy’s are rarely offered to the market across Australia.

The most recent sale was in October 2022, which saw a Pakenham, Victoria asset sell for $14.75m. This sale reflected a yield of 4.06 per cent.

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Mr Blacklow described the Hobart BWS at No.3/124 Davey St as one of the leading BWS stores in Tasmania.

“The tenant has been trading from this site for over 26 years,” he said.

“Via a triple-net lease, the tenant pays all of the outgoings such as rates, water, insurance and structural maintenance.

“It is an extremely busy business, with over 31,000 vehicles passing by every day.”

No.3/124 Davey St, Hobart.

The current lease for the 751sq m property runs to 2031, plus two more 10-year options.

The drive-in BWS was originally built in 1981, and was renovated in 2003 to double its size.

Mr Blacklow expects the Hobart and Bellerive properties to be popular at auction due to their attractive lease covenants, prime locations and market-leading tenants.

He anticipates yields in the 4-5 per cent range.

These properties will be for sale at the next Burgess Rawson Investment Portfolio Auction, August 2 at the Crown Casino from 10.30am.

For details, contact Knight Frank or Burgess Rawson.