Fortune favours Tasmania’s commercial property market

This year has been a notable one for commercial property sales in Tasmania.

Realcommercial.com.au lists 125 sold commercial properties statewide between January and the end of July.

One of the most recent is Moonah’s Harvey Norman complex, which was sold by Linear Capital Pty Ltd to Primewest Funds Ltd for $14 million.

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Harvey Norman anchors this retail centre alongside two national, publicly listed retailers — Beacon Lighting, and Boating Camping and Fishing.

35 Murray St, Hobart.

The 6400sqm property is located at the intersection of Main Road and Derwent Park Road, about 7km north of Hobart’s CBD.

The sale was handled by JLL directors of retail investments Stuart Taylor and Stephen Bolton.

Taylor says the asset received interest from buyers on a national level, with Tasmania now firmly on investors’ agendas as the national market remains constrained when it comes to quality retail investment opportunities.

“We expect to see continued interest in Tasmanian commercial property, with statewide economic growth continuing to outpace the national annual average, driven by positive population growth, an active consumer sector and strong tourism numbers,” he says.

80 Brisbane Street, Hobart.

Taylor says investors were also looking to Tasmania as an opportunity to receive higher returns, with interstate capital cities at record low yields for prime retail investment assets.

He says this $14 million transaction reflected an initial yield of 7.28%.

Big Tasmanian commercial sector sales this year include:

● A deal believed to be around $10 million for the UTAS Conservatorium of Music building.

● $5.358 million for the Freedom Furniture property.

● $1.8 million for Airlie in Liverpool Street.

● $2 million for 35 Murray St.

● $6.155 million for Trustee House.

● $4.525 million for the Ash Bester Building.

● $1.65 million for the industrial warehouse site at 209-215 Harrington St, Hobart.

This article from The Mercury was originally published as “Big year of Hobart commercial property sales gathers pace”.