Melbourne investors make beeline for Hobart commercial properties
Melbourne property investors have got their eyes on Tasmania and they have recently nabbed a few key assets.
The Coogans site in the Hobart CBD, the eight-level Telstra Centre in Hobart, and the Centrelink facility in Launceston were each snapped up by investors from Victoria.
Burgess Rawson director Shaun Venables says the company sold the Centrelink building at 5 Techno Park Drive in Kings Meadows to a Melbourne-based Chinese investor for $4.5 million in August.
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“The growing interest in the Tasmanian property was again highlighted here, with the property being acquired by an offshore buyer,” he says.
Last month’s sale of the Telstra Centre in Collins St was Hobart’s second largest office property sale on record. The Mercury understands it fetched well in excess of $30 million.
Knight Frank partner Scott Newton says the company was very pleased to receive such strong interest in this iconic property.
The Centrelink building at 5 Techno Park Drive, Kings Meadows.
“It indicates a real increase in the depth in our market at an institutional level,” he says.
“We had some eight formal parties competing for the asset — and these parties have strong investment mandates.
“Given the low interest rate environment and limited investment opportunities available, strong demand has been created in this sector.”
Edwards Windsor director Tim Johnstone says the Telstra property was bought by a commercial property investor who was excited by the acquisition of the building.
“He has significant plans to complete a refurbishment program and reposition the building to take advantage of the current low vacancy for office accommodation, which exists within the A-grade Hobart CBD office market,” he says.
The former Coogans furniture and electrical retail site in Hobart was sold to an undisclosed Melbourne-based buyer, with CoreLogic figures showing the 1950s-built building fetched $4.84 million. It was previously sold in 2000 for $1.91 million.
PRDnationwide director Tony Collidge says the buyer saw “a real future” in Hobart and that the Coogans building was not its first investment in Australia’s southernmost capital city.
The Coogans showroom is listed for lease with Devine Property, with the price to be negotiated.
This article from The Mercury originally appeared as “Millions spent by Melbourne investors on Hobart buildings”.
