Liv Eat & Bloom Beauty 6/139-143 Hobart Rd, Kings Meadows. Picture: Supplied
A Launceston food and beauty asset has fetched a multimillion-dollar sale price under the hammer.
Listed for sale with CBRE and Elders Commercial, No.6/139-143 Hobart Rd, Kings Meadows, was put under the hammer at the September Investment Portfolio Auction 187 in Melbourne.
The asset, which is leased to Liv Eat and Bloom Nails & Spa, sold for $2.685m, a yield of 6.06 per cent.
CBRE associate director George Wilkinson confirmed the property had been purchased by a Tasmanian investor.
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Liv Eat & Bloom Beauty.
The auction kicked off with an opening bid of $2.5m.
A back and forth between bidders saw the price climb from $2.55m to $2.6m, then $2.625m, $2.635m, $2.64m, $2.65m, and $2.66m.
“First. Second. Last chance …. $266m,” said auctioneer David Scholes. But the bidders were not finished.
“$2.685m, an increased offer, we are on the market,” Mr Scholes said.
“You get three chances. First, second, third and final — done!”
Liv Eat & Bloom Beauty.
Mr Wilkinson said there were two active bidders on auction day.
“One Western Australia-based bidder was bidding via the phone, while the second party participated remotely from a boardroom at Elders Commercial’s Launceston office,” he said.
“The price was in line with expectations and was supported by other transactions within the complex which have all transacted within 5.54 per cent and 6.06 per cent yield range.”
Mr Wilkinson said the asset had attracted interest in the lead-up to auction day.
“The campaign generated a good level of inquiry from local and interstate investors.
“We had multiple interested parties inspect the property throughout the campaign, demonstrating genuine interest in long WALE (weighted average lease expiry) leased retail assets in Tasmania.”
Liv Eat & Bloom Beauty.
Liv Eat has a fresh 15-year net lease, with options extending through to 2061.
Founded in Tasmania in 2006, the brand has since expanded to multiple locations across several states and now forms part of the Banjo’s Group bakery cafe network, which comprises over 50 stores nationwide.
Meanwhile, Bloom Nails & Spa operates under a five-year net lease running to 2030, backed by a further five-year option through to 2035.
Combined, the two tenancies generate net income of $162,781 plus GST, with each tenant covering standard outgoings, including a single holding land tax.
The property is positioned within a retail precinct anchored by major national brands including Woolworths, Coles, Ampol, Amplifon, Commonwealth Bank and Toyota.
It services a regional catchment of 71,000 residents, within a wider population base exceeding 230,000.