Hexa banks $9.1m from Hobart investment

On 956 square metres, Murray House (outlined) has development upside.

HEXA Group has sold Hobart’s Murray House to a Melbourne investor.

The $9.1 million price for the three level asset at 73-81 Murray Street reflects a 5.73 per cent yield.

It also values the building area at $3875 per sqm, with land at $9433 per sqm.

The deal comes a month since we reported Spirit Super was speculated to be paying Alan and Carol Schwartz – also Melbourne investors – c$300m for Hobart’s mixed-use Parliament Square project, which is under construction.

“Several offers were submitted by underbidders from previous campaigns, with the property ultimately transacting to one of those parties,” Colliers’ Daniel Wolman, who marketed Murray House with Leon Ma and Knight Frank’s Richard Steedman and George Burbury, said.

“Murray House was positively received by various buyer groups, anchored by its prime Hobart CBD location and dynamic income profile that is flexible for a multitude of investment and value-add opportunities,” he added (story continues below).

The asset – offices over ground floor retail – is surrounded by taller buildings including some rising 14 floors.

Another commercial investment, a hotel or residential were amongst the proposed development outcomes, given the zoning.

“Properties in the immediate vicinity comprise…Myer, Crowne Plaza Hotel, various office buildings and the State Library,” the agents said.

About seven kilometres away, Melbourne businessman and owner of Australia’s National Basketball League, Larry Kestelman, is also revamping Glenorchy’s Derwent Entertainment Centre – Tasmania’s biggest indoor arena – and an adjoining site.

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Marc Pallisco

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