A sprawling pub between the Midway Point and Sorell causeways on Hobart’s Eastern Shore has sold as an investment.

The c$5.13 million result for the Midway Point Tavern at 2-6 Penna Road, Midway Point, reflects a 5.85 per cent yield.

The occupier just signed a five-year lease.

Annual rent increases are linked to CPI.

The deal includes a 102 square metre manager’s residence.

Midway Point is about 20 kilometres east of Hobart’s CBD.

It is about six kilometres east of Hobart Airport.

Midway Point Tavern

On 5157 sqm with 70 car parks, the Midway Point property contains four components (continues below).

A 920 sqm hotel includes a bar and bistro.

A gaming lounge contains 25 electronic gambling machines, TasKeno and TAB facilities.

There is also a Thirsty Camel-backed drive-through bottle shop.

The site is passed by more than 150,000 vehicles a week according to the sales agents, Elders Commercial’s George Burbury and James Black.

The tenant is responsible for all statutory outgoings including land tax. The present annual rent is $300,000 ex-GST.

Within a growing commuter and tourist corridor the site is near residential developments including the 201-lot Peninsula subdivision and a 160-hectare pipeline in Sorell.

Last year the state government expanded Hobart’s urban growth boundary to include the Sorell East Growth Area master-planned for thousands of homes and causeway upgrades.

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A Brisbane-based fund manager is buying Tasmania’s only Sebel.

The five-level, 49-suite hotel at the south-west corner of St John and William streets, Launceston, will be tipped into Deltine Capital’s fast-growing High Yield Motel Fund.

It previously traded just over 10 years ago for $9.855 million.

The freehold component reflected a 9 per cent return.

The leasehold demonstrated a 26 per cent return.

Resort Brokers was the marketing agency.

First Tassie investment, first Sebel

Completed in 2005, the Launceston building contains two conference rooms, a gym, lounge facilities and restaurant.

The suites are mostly configured with one and two bedrooms. There is a four bedroom penthouse.

Accor manages the Sebel brand.

The deal comes a week since realestatesource.com.au reported Brisbane-based Deltine, for the High Yield Motel Fund, bought three Swan Hill assets, two leaseholds and a freehold, outlaying $7m.

The asset manager has also this year bought Queensland properties, at Dalby and Ipswich – the latter for $19.5m (continues below).

In New South Wales it recently acquired the Observatory at Coffs Harbour and Roseville Apartments complex at West Tamworth.

Launceston is Tasmania’s second-biggest city with a greater population of c90,000.

Sebel Launceston

The Sebel Launceston is Deltine High Yield Motel Fund’s first Tasmanian acquisition, extending the fund into a fourth state.

It is also the fund’s first Accor-branded property.

“The 49-suite hotel is also the fund’s first property with access to Accor’s global reservation system and ALL loyalty program,” it said of the purchase

“Deltine forecasts an average 13 per cent annual income yield over five years, with a 20.1pc annualised total return (IRR) over the same period,” it added.

The hotel has a strong trading history, with revenue growth and profitability, and identified scope to further lift margins, according to the buyer.

Launceston’s demand is supported by health, education, government infrastructure, events and tourism, Deltine said. 

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Kinkora Investments – the name since March for KM Property Funds or KordaMentha Property Funds – has sold a state government-leased asset in Hobart’s east.

The office and warehouse complex at 89 Cambridge Park Drive, Cambridge, collected $28.05 million – a 7.06 per cent net passing yield.

On 2.81 hectares it contains 6897 square metres – a 5910 sqm single-storey office and 987 sqm warehouse – and 163 car parks.

Occupiers include the Department of Health’s Ambulance Tasmania and Care@Home, and Department of Justice (Worksafe Tasmania and Consumer Building and Occupation Services).

The weighted average lease expiry by income is 10 years (continues below).

Melbourne-based Kinkora paid $25m in 2019.

The sale, to another interstate investor, was managed by Knight Frank’s Tom Ryan and Trent Preece with Elders Commercial’s Scott Newton and Richard Steedman (continues below).

Cambridge is about 10 kilometres from the city.

Also this week realestatesource.com.au is reporting Kinkora bought neighbouring offices in Melbourne’s trendy inner-east Cremorne.

They cost $94.5m or $90m after settlement costs.

Anthony Wilson’s Terraplex was the seller.

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A major not-for-profit has cleared the final regulatory hurdle to take over Hobart Private Hospital, ending a prolonged sale process triggered by Healthscope’s financial collapse.

The Australian Competition and Consumer Commission this week approved the acquisition to Calvary Health Care.

The 146-bed hospital at the corner of Argyle and Collins streets, next to Royal Hobart Hospital, includes five operating theatres, a 24-hour emergency department and a cardiac catheterisation laboratory.

Calvary will take control from 1 November.

Healthscope exit

Healthscope agreed to sell Hobart Private to Calvary in December, alongside Holmesglen Private Hospital in Melbourne.

The transactions formed part of the receivers’ and administrators’ process following Healthscope’s parent entities entering voluntary administration in May 2025.

The state government owns the freehold.

Healthscope signed a 20-year lease in 2019.

Not-for-profit monopoly

The ACCC said there was no real commercial likelihood of an alternative purchaser acquiring Hobart Private (continues below).

It added the hospital faced a prospect of closing if the acquisition didn’t proceed.

Calvary already operates Lenah Valley Hospital and St John’s Hospital in southern Tasmania.

In Launceston, it holds St Vincent’s and St Luke’s hospitals.

The takeover will make Calvary the only major private overnight hospital operator in Hobart and Launceston.

Services set to end before takeover: ACCC

The ACCC also considered concerns that some services currently available at Hobart Private may not continue under Calvary’s Catholic healthcare model, including certain fertility treatments, surgical terminations, voluntary assisted dying and gender-affirming procedures.

The regulator concluded those services were likely to cease at Hobart Private regardless of whether the acquisition proceeded.

The state government welcomed the approval, a spokesperson saying it would help maintain private healthcare capacity.

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Singapore sovereign wealth fund GIC has bought a 90 per cent stake in five neighbourhood shopping centres.

The $225 million deal was announced in March by the seller, RAM, on behalf of the ASX-listed Essential Service Property Fund (REP), which will retain the balance.

The disposal forms part of the manager’s plan to increase the ratio of healthcare in the trust’s portfolio to about 80 per cent.

The fund holds 26 assets worth a total c$676m.

Portfolio vacancy is three per cent.

The weighted average lease expiry is seven years.

Supermarket-anchored assets

Three of the shopping centres are in Queensland including the priciest, Coomera Square on the Gold Coast, which REP valued at $83.2m in December (continues below).

The portfolio also includes Springfield Fair in Ipswich and Keppel Bay Plaza in Yeppoon, near Rockhampton – both investments appraised at $40m.

In New South Wales the deal includes Coles Rutherford – valued at $25.5m in December.

The final asset, Mowbray Marketplace (which includes the Target Centre) is in Launceston, Tasmania.

REP held this on its book at $47m.

The assets were assembled under RAM’s Sovereign Strategy and are anchored by supermarkets and other non-discretionary retailers.

Unitholders were told in March that the transaction would accelerate debt reduction and support the resumption of its on-market security buy-back program.

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The University of Tasmania has snapped up a vacant motel to repurpose for student accommodation.

The school is speculated to be paying $3 million for the ex-Wellers Inn at Burnie.

On 3103 square metres at 38 Queen Street, also exposed to Bay View Avenue, overlooking Bass Strait, it contains 24 motel style rooms, a self-contained one-bedroom flat, three-bedroom manager’s residence and large restaurant, function room and commercial kitchen.

The lettable area is 1208 sqm.

It previously sold in 2010 for $1.795m (continues below).

It failed to sell eight years later for $2.35m.

In recent years, the property has been leased to the Tasmanian government and used for seasonal accommodation by agricultural workers.

Elders Commercial’s Nicholas Bond and Clinton O’Keefe were the agents.

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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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