$14m buys Bunnings site

Wednesday 12 December 2018

The Bunnings Warehouse site at Glenorchy has sold for more than $14 million.

The figure eclipsed the $8 million expectation set for the site when it first went to market.

Knight Frank consultant Matthew Wright – who marketed 20 Howard Road in conjunction with Burgess Rawson – said the asset had “definitely exceeded expectations” and that his vendor, the Royal Agricultural Society of Tasmania, was very ‘very happy with the result.”

Mr Wright said the Tasmanian market continued to go from strength with more than 20 bidders participating in the auction.

“There is a significant amount of capital still wanting to find quality assets across Hobart, which is exciting,” he said.

The Bunnings auction was held at the Crown Casino in Melbourne.

The new owner remains undisclosed.

Mr Wright said the site was sold for $14,060,000, which represents a yield of 3.13 per cent.

“This campaign set records across a lot of the marketing mediums, including the highest number of internet views on realcommercial.com.au this year for Australia,” he said.

“We fielded calls from Tasmania, all across Australia and from around the world.

“This further cements Tasmania’s current status as an outstanding property proposition for investors and developers seeking assets and opportunities across the state and, in particular, Hobart.”

Bunnings has a 25-year ‘triple net’ ground lease until 2040 plus a 25 year option and fixed 3 per cent increases.

RAST chief executive Scott Gadd said the sale of the land was in line with the society’s strategic direction.

A number of developments at the showground are either planned or under way including a new showground pavilion, a major retail development on Howard Road, discussions regarding a hotel, and a mixed, medium density affordable/social housing project.

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Written by Jarrad Bevan, The Mercury