Charter Hall scoops up $50m mall

Glebe Hill Village opened in August, 2022.

EXCLUSIVE

Channel Court recently sold for $82.5 million – a record for a Tasmanian mall.

Charter Hall has swooped on a two and a half year old neighbourhood shopping centre paying $50.25 million – a 5.75 per cent net passing yield.

Glebe Hill Village at Howrah, at the Rokeby suburb border, east of Hobart, was offered in October by the developer, Tipalea Partners.

Coles is the anchor with nearly 10 years left to run on its initial lease. That tenancy also includes a Liquorland.

As well as 16 specialty stores and a McDonald’s on a pad site (that restaurant being on a 20 year ground lease), there is 6002 square metres of lettable area.

The weighted average lease expiry by income of 8.2 years.

The site spreads 2.35 hectares with 250 car parks, at the north west corner of Rokeby and Pass roads, also facing Hance and Commere Drive, about a 13 kilometre drive from Hobart’s CBD.

JLL’s Stuart Taylor, Tom Noonan and Jacob Swan listed the asset in October via an expresso.

Landmark mall

Glebe Hill Village was the first Hobart’s first neighbourhood mall in over 10 years.

“Our research identified Howrah as a significant network gap for Coles,” Tipalea chief executive officer, Scott Spanton, said upon listing the asset (story continues below).

Elanor Investors Group divested Glenorchy Plaza in July.

“This research has been vindicated…by the strong trading performance of Glebe Hill Village and this research has been directly responsible for our other centres already developed or proposed at Pimpama, Marian, Cobram and Devonport, he added.

Nine offers were received – from a mix of national private and institutional buyers.

“The asset provides an attractive combination of security of income with significant growth potential, key factors that drive active capital decision making,” Mr Swan said upon listing.

Mr Taylor added “Since opening, the centre has become the most technologically and environmentally advanced…in Tasmania, if not Australia, with a full solar array, EV charging stations, smart bathrooms, air quality monitors, a weather station, car counters, people counters, free wireless charging stations, Tasmania’s first dedicated smart app, cloud-based CCTV throughout, duress intercoms and a building information dashboard”.

Low yield

The Glebe Hill Village deal comes five months since the only neighbourhood shopping centre south of Hobart – Channel Court at Kingston – traded for $82.5m reflecting a 7.5pc fully let market return.

That result was a record for a Tasmanian shopping centre.

Also last July, Glenorchy Plaza, north of the CBD, sold for $19.75m – an 8.1pc yield.

Elanor Investor Group was the seller both times.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.