Historic State Theatre fetches $13.6m
North Hobart’s c1913 State Theatre and the neighbouring ex-Soundy’s department store, c1883 – amalgamated and now a major cinema and retail investment – have sold for $13.6 million.
John Kelly was the vendor; the cinephile acquired the State Theatre from the federal government’s Australian Film Institute in 2002.
He later merged it with the former department store to create an 11-screen complex with bar, bookshop, café and rooftop garden.
In 2019, that cinema business was sold to Readings – in what was the international chain’s first foray into the arthouse space.
Its lease expires in 2029 with a 10 year option.
Properties now sold
On 3971 square metres, the Hobart asset also includes seven tenancies leased to, amongst others, an optometrist, karaoke bar and Federal Street Automotive.
All up there is 5037 sqm of area.
Based on the current rent – $1.27 million – the result reflects a c9.3 per cent yield.
Ray White Commercial’s Matthew Wallace and Claude Alcorso with Burgess Rawson’s Matthew Wright and Beau Coulter were the agents.
The buyer is an as yet undisclosed interstate investor.
More to come.
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