Lack of listings prolongs Hobart's peak
A Tasmanian warehouse and office facility with extensive hardstand has sold to a private investor for $1.96m on a passing yield of 6.7 percent.
The yield – below Hobart’s 8 per cent average for prime industrial registered in the first half of 2018 – for the facility at Huntingfield, south of Hobart, was in line with suggestions that the market would attract premiums for the immediate future, said marketing agent Mark Devine
of LJ Hooker Commercial Hobart
“There could be 12 months left in the peak, simply because of the lack stock in the marketplace,” said Mr Devine. “And that’s probably the case across all sectors, not just industrial. There have been some properties exchange recently on yields as low as five percent.”
Lightning Protection International, a global supplier of in lightning, surge protection and earthing solutions, is the sole tenant at the 2,111sqm site at 49 Patriarch Drive, utilising it as their global headquarters. A total of 1095sqm encompasses the internal building.
The tenant’s current lease ends mid-2021 with another five-year option available.
“The existing tenant utilises all the space currently, but the configuration of the pre-cast building lends itself to multiple tenancies, which helped generate interest during the campaign period,” said Mr Devine.
“There is also scope to convert hardstand area on-site, further offering the opportunity to value-add to the asset.”
The first floor office space comprises approximately 300sqm, warehouse / technical workshop extends over 600sqm, while a rear warehouse houses 195sqm.
According to LJ Hooker Commercial’s Industrial Market Monitor, average capital values for prime industrial in Hobart are around $1400psm.
Mr Devine said Huntingfield’s profile had grown amongst investors because opportunities in long-established northern industrial precincts of Cambridge, Mornington and Brighton had been rare. Huntingfield has been popular for light industrial and smaller scale manufacturing operators who don’t require the northern corridor’s access to the airport or industrial linkages.
Mr Devine said the surrounding Kingborough municipality had proved one of the state’s fastest growing regions. Only a 20-minute drive from the CBD, it was becoming an affordable alternative to Hobart, which has recorded double digit median house price growth in the last 12 months.
For more information on investment sales throughout Tasmania, contact Mr Devine
on 0438 133 950.
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