A prime block of Hobart land, which houses the Glenorchy Bunnings Warehouse, is about to go under the auctioneer’s hammer.
The Royal Agricultural Society of Tasmania is set to sell the 4ha site on which the Glenorchy Bunnings Warehouse was built.
The property, which will be sold at auction on December 12, offers an ‘extremely rare’ 25-year triple net lease to the retailer until 2040, plus a 25-year option.
A triple net lease requires the lessee to pay the rent plus real estate taxes, building insurance and maintenance.
RAST chief executive Scott Gadd said the decision to sell the parcel of land in line with the society’s strategic direction.
He said the auction was expected to generate significant funds for the showground redevelopment plans.
Scott said the 3.8ha site, which has been owned by the society since 1905, had always been larger than required for society activities such as the Royal Hobart Show.
He said the not-for-profit organisation had identifies a mix of development opportunities that would propel the RAST into new directions without compromising the delivery of events such as the Hobart Show.
“The parcel of land leased to Bunnings is surplus to the requirements of the society,” Scott said.
“The most buoyant property market in decades in Hobart makes the disposal of the land a timely move, together with the strategic locality of the site on a major intersection with easy access to the Brooker Highway – Hobart’s main northern outlet – and nearly 400 carparking spaces onsite.”
Te property is listed with Knight Frank and Burgess Rawson.
Knight Frank sales and leasing consultant Matthew Wright said the property was ‘a very exciting and rare property to bringing to the market’.
He described the offering as blue-chip.
“In relation to the tenant, you have one of Australia’s best retailers, Bunnings [Wesfarmers Ltd], on a triple net lease with all obligations lying with the tenant,” Matthew said.
“With fixed 3 per cent increases for the next 25 years, coupled with future development of the surrounding area, this is an outstanding investment.
“We have not seen a property generate as much interest as this one in a long time.
“Interest has been local, national and international.
“Tasmania and particularly Hobart has an amazing appeal to the wider property market across the globe.
“People see it as very attractive place to purchase property and park money in at present.”
A number of developments at the Showgrounds are either planned or under way, including:
– A new Showground Pavilion
– A related major retail development – Spotlight and Anaconda – proposed next door to Bunnings in Howard Road
– Discussions under way regarding a 3.5 star hotel
– A mixed, medium density affordable/social housing project with homes to be available under a ‘pathway to purchase’ option
Price expectations for the RAST sale are about $8 million.
The site attracts a net rent of $439,555 per annum.
The auction will be held in the River Room at the Crown Casino, Melbourne at 11am on December 12.
Potential buyers will be able to bid on-site from a Knight Frank or Burgess Rawson office.
To find out more about the properties in our portfolio, and how we can help you with sales, leasing and property management services, please Written by Jarrad Bevan, The Mercury
Written by Jarrad Bevan, The Mercury