The property generated interest from both domestic and international investors and attracted multiple bids, resulting in a sale yield of 6.2%.
Mr Tong said; “The result indicates that yields have continued to sharpen for retail investment properties, particularly those which have a significant underlying land holding.”
He added that the sale highlighted continued offshore buyer demand for retail assets and a broadening in focus from residential to commercial investment opportunities.
The freestanding, 2,785sqm investment is located on the fringe of the Hobart CBD and occupies a landholding of circa 3,236sqm.
It offers a five-year to Officeworks, providing an annual income of $725,000.
Mr Du Rieu noted; “The limited supply of investment grade retail properties on the market is leading to further yield compression for investments leased to national tenants. With the current environment characterised by a lack of premium, retail investment offerings, we are seeing increased demand for assets located in outer metropolitan areas which are experiencing population growth, especially in markets such as Hobart.”
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