Good Guys asset snapped up by Melbourne investors

No.25 Goderich St, Invermay has been sold. Picture: Supplied

A RETAIL site in Launceston has turned out to be the prized asset at a commercial property auction held in Melbourne.

It fetched the highest price of the day at $11 million.

Initially, No.25 Goderich St, Invermay — home of the The Good Guys, a subsidiary of ASX-listed JB Hi-Fi Limited — was set to be sold under the hammer at the Burgess Rawson Portfolio Auction 151.

The asset was taken to market by Knight Frank and Burgess Rawson.

But just prior to go time, auctioneer David Scholes hinted at a change of plan.

He said serious negotiations were underway but they might circle back around to it later.

Turns out, there was no need.

Launceston’s The Good Guys property has been sold.

Enviable location.

Burgess Rawson senior sales and leasing executive Matthew Wright said there were multiple investors all hoping to secure the property.

“The market was hot for this property,” he said.

“We asked those parties to submit their best offer prior to the auction and they certainly did that.”

Mr Wright described the sale price as an unbelievably great result for the vendor.

“The guys that bought No.25 love Tassie, they feel like the state is moving in the right direction,” he said.

“It is their first Tasmanian asset and unlikely to be their last. They are keen to acquire more properties right across the state.”

A sought-after asset.

Portfolio Auction in Melbourne.

The 2520sq m building is well positioned in a high profile site nearby the University of Tasmania, Bunnings, Officeworks, Petstock, McDonalds, Fairbrother Construction and RSEA.

A new lease is in place until 2028 with options through to 2048 to the blue-chip white goods and electronics tenant.

Mr Wright said to achieve a yield that’s well under 5 per cent in Tassie, particularly Launceston, was a strong result.

“It’s an incredible result that shows the continued strength of the commercial property market,” he said.

“For many investors based all over Australia, Tasmania is still the flavour of the month, a place where capital wants to be placed.”

While yet to be announced, investors should keep an eye out for more Apple Isle assets coming in future auctions.