Hobart CBD Officeworks Transacts to International Investor from Mainland China
A domestic private family have just cashed in on their Officeworks Investment in the Hobart CBD, selling at auction to an international investor with heritage from mainland China for $11,725,000, with the CBRE Victorian Freestanding Investments transacting the property through their premium property portfolio auction.
CBRE Freestanding Retail Investments Joseph Du Rieu, Kevin Tong and Mark Wizel transacted the asset exclusively for the vendors, which attracted interest from both the domestic and international investors, witnessing multiple bids from across the country on the night.
CBRE Manager Kevin Tong commented that “The result we have achieved at Officeworks Hobart indicate that yields have continued to sharpen for retail investment properties, especially those which have significant underlying land holding.”
The freestanding investment is located on the fringe of the Hobart CBD, with a 5 Year lease to Officeworks, with an annual income of $725,000 per annum.
Joseph Du Rieu commented that “The limited supply of investment grade retail properties on the market is leading to further yield compression for investments leased to national tenants, including officeworks. With the current environment characterised by a lack of premium retail investment offerings, we are seeing an increase in demand for retail investment assets located in outer metropolitan towns which are experiencing population growth, especially in areas such as Hobart.”
Kevin Tong added that “The international appetite for Australian real estate, especially retail investments in 2018, has continued to growth which was evidenced through 67% of the retail properties this year selling to investors of Asian heritage. This demand has is expected to continue as investors begin moving away from pure residential and explore more options with the commercial sector.