It’s hammer time
Three A-grade Tasmanian hardware properties are set to be sold under the hammer, writes Jarrad Bevan.
A SIGNIFICANT slice of Tasmania’s hardware property market will go under the hammer this month.
Agents say they are expecting investors to be lined up for this in-demand asset class.
The commercial properties that are home to three Nubco stores — Kingston, Mornington and Wivenhoe in Burnie — are set to be sold at Burgess Rawson’s next Investment Portfolio Auction on Wednesday, March 31.
Property owner Paul Krawczyk said the auction was a good launching pad to showcase some A-grade properties nationally.
“There’s not a lot of commercial product for sale, especially not a lot of really good commercial for sale,” he said. “While the auction is a chance to broadcast nationally, it was also important to have local agents involved, people I have worked with for years; it’s a good balance.”
Mr Krawczyk said Tasmanian assets were increasingly becoming “highly prized”.
He noted there had been a shift in mindset among interstate investors.
“Some people wouldn’t have dreamt of owning commercial property here six years ago,” he said. “But now, anyone with a quite decent portfolio … you would think they would own Tasmanian property.”
All three properties are leased to ASXlisted hardware and industrial supplier Coventry Group Ltd on identical, landlord-friendly, seven-year net leases to 2026, with options to 2036 at prominent and carefully selected locations.
The Kingston property at No.176 Channel Highway features a prominent 4138sq m site with a 1632sq m warehouse and showroom. It is surrounded by major retailers in one of the state’s fastest-growing regions. It returns a net rent of $216,678 per annum, plus GST.
At Mornington, the Nubco at No.14 McIntyre Street is within 5km of the Hobart CBD and has a 3151sq m site within the leading industrial precinct on the city’s Eastern Shore. It currently returns $108,594 per annum, plus GST.
Entry-level investors are expected to be among the potential purchasers of the Wivenhoe property. “Set just minutes east of Burnie and with its $71,823 annual rent, we will likely see it change hands between $900,000 and $1.1m,”
Burgess Rawson agent Beau Coulter said. Coulter is marketing the trio of properties with colleague Billy Holderhead, in conjunction with Knight Frank’s Nicholas Bond and Ray White’s Trevor Fox.
“It’s rare that entry-level buyers have the chance to secure an ASX-listed tenant at this price point and, being on the main road in and out of Burnie, it has very high exposure,” Mr Coulter said.
Ray White’s Trevor Fox said all three properties had the added appeal of clearspan, some hard stand and easy accessibility for vehicles.
He said they also benefited from their proximity to Bunnings outlets, which compete for a different section of the hardware market.
“Everywhere the Nubco sites are, Bunnings has opened up within 500m, which is a ringing endorsement for the quality of the locations,” Mr Fox said.
Mr Krawczyk is shifting his focus to apartment development and said the Nubco properties would be put towards these projects. “The sale funds will be used to help resolve some of the inner-city living shortage that we have in Hobart,” he said.
The auction will be held on March 31 in the Crown Casino’s River Room from 10.30am.
SOURCE: Jarrad Bevan, Hobart Mercury