Take a bite of the action

Wednesday 20 March 2019

Hot on the heels of the hugely successful auctions of the Glenorchy Bunnings Warehouse site last year, another high-profile Tasmanian property is expected to sell under the hammer next month.

Ranked in the top three for the best-performing Nando’s restaurants in Australia, this North Hobart asset is expected to grab plenty of attention.

It goes on the block at the next Burgess Rawson Investment Portfolio Auction to be held at the Crown complex in Melbourne on April 3.

Just 2km from Hobart’s CBD, the Nando’s store has benefited from the city’s thriving residential market, with Hobart commercial properties among the most sought-after in the country, said Knight Frank agent Matthew Wright, who is marketing the property in conjunction with Burgess Rawson.

Matthew described the Tasmanian commercial property market as having gone from strength to strength in recent times.

He said retail offerings in particular has experienced significant growth.

“Purchasers are seeking quality properties with strong national lease covenants,” Matthew said.

“We have seen a strong trend with enquiries coming from offshore, and interstate purchasers joining ‘older Tasmanian money’ in competing for assets recently.

“Tasmania is certainly well and truly on the international property menu.”

The North Hobart Nando’s is leased until 2028, with a further 10 years of options.

Burgess Rawson sales executive Beau Coulter said it was a rock-solid investment opportunity.

He said fast-food market had continued to fire this year, with assets remaining tightly held and any available stock attracting interest locally and abroad.

“We saw further evidence of this with the Hungry Jack’s that we sold in our February portfolio,” Beau said.

“The Caroline Springs property [in Victoria] attracted more than 275 enquiries, resulting in a capitalisation rate of 4.08 per cent.”

With a long lease in place, a new $600,000 fit-out and retail assets already enjoying another boom year, the mixed-use Nando’s asset at 345 Elizabeth Street, North Hobart, will be one of the blue-chip offerings among 22 properties up for grabs at the Crown in Melbourne.

The high-profile building has an Art Deco appeal.

Nando’s occupies the ground floor, while two updated residential apartments are located above.

The property currently returns $182,969 in rent per annum.

In December, the Bunnings Warehouse at Glenorchy sold for more than $14 million – $5 million above price expectations.

To find out more about the properties in our portfolio, and how we can help you with sales, leasing and property management services, please contact us.

Written by Jarrad Bevan, The Mercury