Three stores leased to high-performing Tasmanian brand Nubco are to be auctioned this month
A significant slice of Tasmania’s hardware property market will be put under the hammer this month, with investors expected to line up for the in-demand asset class.
Commercial properties that are home to three Nubco stores at Kingston, Mornington and Wivenhoe (Burnie) are set to be sold at Burgess Rawson’s Investment Portfolio Auction on Wednesday, March 31.
And with hardware cementing its status as an essential service throughout 2020, agents say there is no better time to invest in proven hardware assets.
All three properties are leased to ASX-listed 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 176 Channel Highway features a prominent 4,138sqm site with a 1,632sqm warehouse and showroom and is surrounded by major retailers in one of the state’s fastest-growing regions. It returns net rent of $216,678 per annum, plus GST.
At Mornington, the Nubco at 14 McIntyre Street is within 5km of the Hobart CBD and enjoys a favourable 3,151sqm 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, minutes east of Burnie, with its $71,823 in annual rent likely to see it change hands between $900,000 and $1.1 million, according to Burgess Rawson agent Beau Coulter, who is marketing the trio of properties with colleague Billy Holderhead, in conjunction with Knight Frank’s Nicholas Bond (North Property) and Ray White’s Trevor Fox (Southern Properties).
“Burnie is a great location and is home to Tasmania’s busiest port, and this property is exceptionally affordable for the first-time investor,” Mr Coulter said.
“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.”
All three properties have the added appeal of gantry cranes and good clearspan, while Mr Coulter said they benefit 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 500 metres, which is a ringing endorsement for the quality of the locations,” he said.
“As a location, Kingston is almost as good as it gets. It’s visible, has excellent parking and easy access, with a great warehouse and showroom space, while Mornington is in a renowned industrial location and surrounded by complementary businesses including Bunnings, Reece Plumbing, Middys, Tradelink and Carpet Court.”
Mr Coulter said hardware had earned a reputation as “pandemic proof” throughout 2020, with Nubco a particularly strong performer.
“The Nubco brand, over the first six months of the 2020/21 financial year, was up 18.2% in sales, which is remarkable growth and a major vote of confidence in the sector – particularly for commercial property investors.”
Burgess Rawson’s 143rd Investment Portfolio Auction will be held in Crown Casino’s River Room from 10.30am AEDT on Wednesday, March 31.