The Tyas Family Office backed Cadre has completed its maiden Tasmanian project – a large format retail complex near Formby Road and the Spirit of Tasmania terminal, at Devonport.

The 3400 square metre centre at 7-9 Finlaysons Way was fully pre-committed before construction started in mid-2024.

The site historically accommodated a foundry operated by the Finlayson Brothers.

Cadre secured a redevelopment permit in 2023.

Oliver Kelly Constructions was the builder.

The Three tenants each signed 10 year leases – Total Tools for 1550 sqm, with RSEA Safety and Barbecues Galore each occupying 1050 sqm.

CBRE was the leasing agency.

More to come

The end value of the Finlaysons Wy project is $15.5 million (continues below).

Cadre will now pursue other Tasmanian sites for large format retail projects for the Tyas Family Office.

“The Devonport catchment continues to benefit from significant infrastructure investment, including TasPorts’ $240 million Quaylink port redevelopment and the introduction of larger Spirit of Tasmania ferries, expected to increase freight capacity by 40 per cent and bring an additional 160,000 passengers through Devonport annually,” Cadre founder and director, Nick Tyas, said.

“The completion represented an important milestone for the group’s expanding national large format retail portfolio,” according to the executive.

“Devonport is a project we believed in from day one…securing three of the country’s strongest large format retailers before construction commenced was a strong endorsement of both the asset and the broader region,” he added.

“Holding the centre as a long-term investment reflects our continued confidence in regional Tasmania and our focus on building a portfolio of high-quality, income-producing retail assets backed by strong national tenants”.

The group is also developing the Grafton Lifestyle Centre in New South Wales’ Northern Rivers region, expected to be worth c$75m upon completion.

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Woolworths Group has sold 10 retail investments in one line – part of a program to recycle real estate capital.

Forest Endeavour, led by Taiwan’s Lin family, also the owner of developer and investment house Shayher Group, is the buyer – for more than $500 million.

In New South Wales, Queensland, Tasmania and Victoria, the portfolio includes a mix of neighbourhood shopping centres and near-complete malls.

All are anchored long term to Woolworths.

“This major transaction provides a highly beneficial outcome for both parties…it crystalises and returns development proceeds for Woolworths, while delivering Forest Endeavour ten new, high quality assets offering growth potential in the one transaction” CBRE’s James Douglas, who brokered the deal with Joe Tynan and Michael Hedger, said.

Long leasebacks

Operational assets in the portfolio include Kiama Fair, in southern NSW and Doolandella in Brisbane (continues below).

Soon to be completed assets are in Marsden Park and Austral, in Sydney.

Complexes due for completion after that are in Chelsea Heights – a former Mitre 10 at 1-23 Wells Road, in Melbourne, and Belmont, Newcastle.

“The performance of the completed supermarkets is exceptional and the forecast sales of the centres under development will see them deliver meaningful sales in their respective catchments when opened and provide Forest Endeavour with resilient and growing returns in the future, with next to no capital leakage given the newly constructed nature of the assets.” Mr Tynan said.

The deal comes three months since we reported Forest Endeavour bought the Paradise Centre on the Gold Coast from the Abu Dhabi Investment Authority.

That sale was worth $346.5m.

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A state government anchored medical and office facility with longer term development upside in East Launceston has sold.

The fully leased five level QV Tower at 11 High Street returns $1.147 million net annual rent ex-GST.

With 6742 square metres and 47 car parks, the Department of Health, CGU Insurance, its affiliate, WFI Insurance, both IAG brands, Emerge Allied Health and Launceston Psychology Clinic are amongst the occupiers.

The 4319 sqm site also exposed to Clarence St is zoned Urban Mixed Use under the Launceston Local Provisions Schedule.

Revamped asset

The seller, which paid $6.35m in late 2020, recently completed a significant upgrade including a base building refurbishment, new HVAC systems, electrical upgrades, improved amenities and premium medical fit outs (continues below).

Assuming the on sale was struck at a yield of nine per cent, the latest deal could circle $12.7m.

Agents, CBRE’s George Wilkinson, Matthew Wright and Shaun Venables with Howell Property Group’s Andy Howell, aren’t quoting the result.

They did however say there was strong interest from the government and private investors due to the long-term income security and minimal vacancy risk.

The office is about 1.7 kilometres from Launceston’s CBD.

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An Australia Post distribution centre in Hobart’s north west Derwent Park has traded between private investors.

The 3954 square metre irregular shaped property, 11C Lampton Avenue, achieved $4.4 million.

It previously sold in 2023, for $4.215m.

Then, the federal government was paying c$265,000 annual net rent on a lease with annual CPI reviews, and allowable rent rises between 2.5-5 per cent.

That agreement expires next year when the government can exercise a five year option.

Australia Post has occupied the complex, with an 1816 sqm warehouse, since it was developed in 2002 (continues below).

“Positioned within Hobart’s premier industrial precinct of Derwent Park, the property benefits from proximity to major national retailers, logistics operators and the major arterial roads, reinforcing the long term investment fundamentals of this location,” CBRE’s George Wilkinson, who marketed 11C Lampton Ave with Matthew Wright, said.

“This transaction further demonstrates the strong appetite from private investors seeking government-leased industrial assets in supply-constrained markets,” he added.

Derwent Park is about six kilometres from the city.

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The Rockliff government has bought a north west Hobart aged care home to repurpose as a mental health facility.

The 94 bed Rosary Gardens complex on 3.9 hectares at 85 Creek Road, New Town, set it back $33 million.

Southern Cross Care Tasmania is the seller.

The sale is subject to a lease expiring 2029.

Hospital planned

The site is near a St Johns Avenue property the government had planned to build a mental health hospital, replacing the Roy Fagan Centre, at Lenah Valley.

The Rosary Gardens buildings will be remodelled and upgraded.

The replacement hospital will service older Tasmanians.

Settlement is scheduled September 30.

New Town is about four kilometres from the CBD.

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A state government and ANZ bank backed office with development upside has traded in Hobart’s CBD.

The 3076 square metre property, 59-63 Liverpool Street, with the tower at the corner of Argyle and Bathurst, collected $67.65 million – a 7.24 per cent yield.

The result values the (10,511 square metres of) lettable area at $6436.

In the city’s medical and education quarter, the building also contains a multi-level, 331-bay car park, managed by Sultan Parking.

Long lease

Insignia Financial also occupies 59-63 Liverpool St.

The weighted average lease expiry is 8.9 years by area and 8.2 years by income.

The NABERS Energy rating is 5 star.

JLL’s Piper Dedrick, Tim Carr, Josh Rutman and MingXuan Li were the agents.

Seven offers came in following an expressions of interest campaign closing September.

The buyer is a private investor.

The deal comes five months since we reported Singapore’s Fragrance Group bought the city’s Saint David Junction pub with plans for a high rise hotel.

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The University of Tasmania has sold another site until recently earmarked for student accommodation.

The school is understood to be banking just over $30 million for the 1.18 hectare Hobart amalgamation: 103 Melville Street and 159-163 Harrington.

It paid $30m in 2019.

For years before then, the property, with a 6508 square metre showroom, was a hardware store.

Prior to 2015, Mitre 10 was the occupier.

Nowadays it is fit out with a café, gym, basketball courts and cricket pitches.

The site also has c118 car parks.

International student number cap

The property sold to an as yet undisclosed developer set to deliver a landmark project which “will contribute meaningfully to Hobart’s future”.

Zoned Commercial under the Hobart Interim Planning Scheme 2015, residential towers up to 30 metres – or about 11 levels – could be considered.

Six storey buildings are nearby.

Also facing Murray and Brisbane streets, there is 400m road frontage.

The Cat and Fiddle Arcade, Centrepoint Shopping Centre, Parliament Square, hotels, Crowne Plaza, DoubleTree by Hilton, Ibis and RACV, and the Royal Hobart Hospital, are walking distance.

Burgess Rawson from CBRE’s George Wilkinson and Matthew Wright with Ray White Commercial’s Claude Alcorso and Matthew Wallace were the agents.

The deal comes 14 months since we reported the university sold two Hobart hotels, where it also planned accommodation, to Singapore’s Fragrance Group.

The school starting shedding the assets following the federal government capping international student numbers – a decision it said would result in 500 fewer students last year alone.

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A Mornington industrial investment backed by three state government departments sold at auction last week.

The $5.705 million result for 132 Mornington Road reflects a 5.22 per cent net passing yield.

The departments of Natural Resources & Environment, Police and Fire & Emergency each occupy a freestanding warehouse.

All up there’s 2654 square metres, with leases expiring between 2029-2037 with options, and 17 car parks.

About 5000 sqm of the 1.23 hectare block can be developed now.

Local, mainland and institutional investors looked in, according to Burgess Rawson for CBRE’s Matthew Wright, George Wilkinson and Mark Foster, who marketed 132 Mornington Rd with Elders’ Scott Newton and Richard Steedman.

Mornington is about seven kilometres east of Hobart’s CBD.

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Fragrance Group has snapped up Hobart’s long-vacant Welcome Stranger, formerly known as the Freemasons Hotel.

The Singapore-based developer is speculated to be paying about $4.4 million ex-GST, sources say, for the 1332 square metre holding incorporating 58 Harrington Street and 59 Davey – marketed as Saint David Junction.

The seller paid $5.5m in late 2022 – a particularly buoyant year for the hotel sector.

That vendor was Melbourne based Hexa Group which bought the asset in 2019 with plans for a 13-level, or 45 metre, residential tower with 52 dwellings – a proposal rejected by the City of Hobart in then at appeal by the Resource Management and Planning Tribunal, for, amongst other concerns, height and heritage.

The deal comes six weeks since we reported North Hobart’s historic ex-Soundy’s department store, c1883, and neighbouring c1913 State Theatre – now amalgamated as a Reading cinema – sold to an interstate investor.

Fragrance buys another Hobart site

The Welcome Stranger site failed to sell after an expressions of interest campaign closing last June.

Another EOI was listed earlier this year via Stonebridge’s Justin Dowers with Elders’ Richard Steedman and George Burbury.

A high-rise hotel development is expected.

Fragrance owns a nearby property – 28-30 Davey St – where it was in late 2022 permitted to build a 13 level, 152-key, 5-star hotel.

It also controls the ex-Myer store at 179 Macquarie St – approved last year for a nine storey, 206 key hotel, initially to be a Novotel but now a Double Tree by Hilton.

Four years ago, group sold Blackstone a 3009 sqm block at 2-6 Collins St, also facing Brooker Highway and Macquarie St, in town, for $9.6m after failing to win permission for a 15 floor, 495-key hotel.

Also today we are reporting Steven Shoobridge’s Star Group has bought another Queensland hotel – outlaying $24m.

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Clarence City Council is paying $23.5 million for a Rosny Park office leased to the state government.

The deal for the Mines or Mineral Resources Australia Building at 30 Gordons Hill Road, funded through cash reserves, will contribute income for the group to spend on local initiatives.

On 1.33 hectares zoned Central Business in the Clarence CBD, it also offers repositioning upside with a community hub or civic precinct expected to form part of a development business case.

The government is on a lease expiring 2026 for Minerals Resources Tasmania.

Another council buys income

The deal comes five weeks since we reported the City of Newcastle bought a Wollongong medical centre from Barwon Investment Partners for its Newcastle Council Future Fund, which also aims to us revenue on council initiatives.

Not long earlier, that council also acquired a Taree Bunnings for that trust.

The City of Gold Coast meanwhile recently snapped up the balance it didn’t control of the spectacularly located Gold Coast Corporate Centre at Bundall.

In Victoria, Albury Council bought an ex-paper mill from Visy last month, for water supply instead of income.

The Gordons Hill Rd property previously traded in 1988 for $5.25m.

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