Hobart real estate: Fully leased No.81, Salamanca Place, Battery Point attracts global interest
No.81 Salamanca Pl, Battery Point is for sale. Picture: Supplied
When the rare opportunity to buy a building in world renowned Salamanca Place comes along, investors will leap to attention.
This has been the case for a 725 sqm property at No.81, which has attracted about 50 inquiries – local, interstate and international – since hitting the market just a few weeks ago.
The Battery Point building provides potential buyers with a fully-leased freehold investment, featuring retail on the ground level, and offices above.
No.81 Salamanca Pl, Battery Point.
No.81 Salamanca Pl, Battery Point.
Knight Frank partner George Burbury said the strong level of inquiry was in-line with expectations for a prestigious property such as this.
“Battery Point is some of Tasmania’s best freehold real estate, and a property like this one is a trophy asset,” he said.
“We have some private international investors who have shown interest in the property.
“Developers have inquired about it, too. They are looking at the concept of one day converting the building into high-end apartments.”
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While there are comparable sales in the area, they are not perfectly apples to apples. For one, No.81 does not have a hospitality tenant, while the other three recent sales did.
The Rockwall building at No.89 sold earlier this year, while Irish Murphy’s and the Ball & Chain restaurant and apartments transacted back in 2016 and 2017.
Mr Burbury said the yields for those sales were 4.29 per cent, 3.48 per cent and 4.36 per cent.
No.81 Salamanca Pl, Battery Point.
No.81 Salamanca Pl, Battery Point.
There is an opportunity for rental growth in the short to medium term at No.81, with the property described as a “diversified investment” that is home to five separate tenants.
Mr Burbury said Salamanca attracts about one million visitors every year, and these retailers enjoy a prime Hobart position – especially during cruise ship season.
In the future, there is the opportunity to reconfigure the building’s ground floor layout, at lease expiry, if a single retail tenant is preferred.
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Level 1 and 2 feature impressive modern office fit-outs.
The land area is sizeable at 370 sqm, with the opportunity to provide rear access to the building via Kelly St.
It has two on-site carparking spaces.
No.81 Salamanca Pl, Battery Point.
The estimated passing net income is $207,052, plus GST, before owner outgoings.
No.81 Salamanca Pl, Battery Point is listed for sale with Knight Frank. Expressions of interest will close next Thursday, November 30, at 4pm AEDT.
