A ready-made portfolio of commercial properties at Howrah will launch for sale this week. Picture: Supplied
It has been over a decade since an opportunity like this came along in Hobart – and buyers are ready to take a bite.
In December, two new fast-food buildings and a new petrol station on the Eastern Shore are set to be sold under the hammer.
The Howrah assets will hit the market this week, listed with CBRE and Elders Commercial.
Vibe Petroleum, KFC and Hungry Jack’s, adjoining the Coles-anchored Glebe Hill Village Shopping Centre, were completed and opened for business mid-year.
Each has long-term leases with 3 per cent fixed annual rent increases with options ‘til 2066 for the food outlets and 2058 for the petrol operator. Net income ranges from about $272,000 to $370,000 per annum for each asset.
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Howrah Portfolio No.1/9, 2/9 and 3/9 Commerce Dr, Howrah.
Howrah Portfolio No.1/9, 2/9 and 3/9 Commerce Dr, Howrah.
CBRE senior director Beau Coulter and Elders Commercial director George Burbury said it was highly uncommon to see assets like this sold on the open market in Hobart. They said no Hobart fast-food asset has been sold since the North Hobart Hungry Jacks in 2013.
“They are rarely offered on the market,” Mr Coulter said.
“It can be hard to unlock these premium, commercial sites,” Mr Burbury added.
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Mr Burbury said the development on Commerce Dr is the final piece of the Glebe Hill subdivision.
“The KFC, Hungry Jacks and Vibe assets benefit from neighbouring a high-performing Coles supermarket, McDonald’s, bottle shop, pharmacy, butcher, bakery, post office, health and beauty and eateries.
“They are positioned within a major growth corridor, with some 3800 new homes planned or underway in the surrounding area.”
Howrah Portfolio No.1/9, 2/9 and 3/9 Commerce Dr, Howrah.
The Hungry Jacks, KFC and Vibe assets are expected to be highly sought-after at the December 9 Portfolio Auctions. They will be available to purchase individually.
Mr Coulter said given the rarity of the assets, and the depreciation benefits of brand-new buildings, he expects strong competition on auction day.
“The growth of this precinct is a big drawcard,” he said.
“It is the only Hungry Jacks on the Eastern Shore, and the second KFC, servicing a large catchment.
“Food is non-discretionary and recession proof.”
Howrah Portfolio No.1/9, 2/9 and 3/9 Commerce Dr, Howrah.
Mr Coulter said some investors see yields for these types of assets as more secure than government bonds.
“We expect national and local appetite for these assets.”
Meanwhile, the Mercury understands the large vacant block next to these assets was recently sold.
Retail commercial development is being planned for the site, to commence in the next 12–18 months.