$22.5m Government Office Sale Highlights Buyer Confidence in Alternative Markets

The Launceston CBD office building known as ‘Henty House’ has sold to a Melbourne-based syndicator for $22,525,000.

CBRE’s Melbourne Capital Markets Office team of Tom Ryan and Scott Orchard jointly negotiated the transaction with Tim Johnstone and Scott Alexander of Hobart-based agency Edwards Windsor.

The five-level, 1 Civic Square property was purpose built for the Tasmanian Government in the early 1980’s and is leased to both the state and federal government, offering a weighted average lease expiry (WALE) of more than six years.

It was sold on behalf of Sydney-based property investment company STRADA Group.

Henty House’s various government occupiers include Health and Human Services, Justice, Treasury and Finance, Premier and Cabinet, Police, Fire and Emergency Management in addition to the Federal Government on a new 15-year term.

Located in the central Civic Precinct near Royal Park and the Tamar River waterfront, the building occupies a 2,517sqm site, provides a net lettable area of 4,678sqm and generates a net annual income of more than $1,523,000.

CBRE’s Mr Ryan noted that despite current market uncertainties buyers were continuing to pursue quality investment opportunities.

“There is no question that buyers are reassessing their strategies and expectations following the significant change to the interest rate landscape. However, while the depth of interest has reduced, there is continued confidence in the market and solid transaction outcomes are occurring led by investors wanting to stay ahead of an anticipated buyer resurgence in the new year,” Mr Ryan said.

CBRE’s Mr Orchard added, “While sale results have been limited through the middle part of the year as a market adjustment plays out, there is still considerable local, national and international capital looking for opportunities in prime and alternative markets as demonstrated by the sale of Henty House.”