Launie CBD asset sold for ‘well beyond reserve’
SOLD: No.151-159 York St, Launceston. Picture: Supplied
ALL it took was seven minutes of action for this Tassie asset to fetch a seven-figure sale.
Launceston’s Barbeques Galore building in York St was among the nationwide properties sold under the hammer in Melbourne on Wednesday — it was snapped up under competition for $3.845m.
Burgess Rawson senior sales executive Matthew Wright said the property had sold for well beyond its reserve price.
“There were 43 bids on the property, and an outstanding result,” he said.
“In total we sold $63.7m worth of property with an 80 per cent clearance rate.
“The average yield was 4.86 per cent, similar to the Launceston property’s 4.23 per cent; a very positive outcome despite interest rate rises.”
Launceston’s Barbeques Galore building has been sold under the hammer.
No.151-159 York St, Launceston.
Knight Frank commercial sales and leasing agent David Webster said the York property attracted about 90 inquiries during the month-long campaign, with interest from Tasmanian and interstate investors.
“Phone bidding was undertaken from Launceston and Hobart as well as from within the auction room at Crown Casino, with a Melbourne-based private investor the eventual successful purchaser,” he said.
Nicholas Bond, Knight Frank director, said that investors were overall optimistic about the performance of Northern Tasmanian commercial market.
“The result reflects this confidence and a continued focus by investors to secure well-located assets underpinned by long-term leases to national brands,” he said.
Mr Wright said highly regarded tenants were in demand, regardless of a property’s price.
“For anything under $6m, there is a lot of cash in the market. People are steering away from the stock market, they want bricks and mortar,” he said.
Launceston’s Barbeques Galore building has been sold under the hammer.
No.151-159 York St, Launceston.
Mr Webster added that the sale of the Barbeques Galore asset was one in a series of recent successful transactions that Knight Frank have concluded with Burgess Rawson across Launceston and Northwest Tasmania, including properties leased to The Good Guys, Capital Health Limited, Anytime Fitness and Specsavers.
The York St property was sixth on the docket at the Burgess Rawson Portfolio Auction 155.
Auctioneer Jesse Davidson described No.151-159 York as a “cracking” property.
“Tasmania continues to perform, that’s why this property had such an incredible amount of interest,” he said.
The opening bid for the property was $2.8m, with the room quiet at first but not for long. Mr Davidson called “going once, twice” before bids started rolling in quickly.
From $3m it jumped in lots of $25,000 across multiple bids up to $3.5m.
As the auction heated up, $50,000 and $100,000 bids came in before it was declared ‘on the market’ at $3.805m; then eight more bids took it to its final price.
