Spirit Super strikes Tasmania’s biggest property deal

Parliament Square was listed in July.

Spirit Super, created six months ago with the merging of MTAA Super and Tasplan, is paying c$330 million for Hobart’s mixed-use Parliament Square.

Murray House (outlined) is three blocks from Parliament Square.

The deal, with Alan and Carol Schwartz’s Trawalla Group, Citta Property Group and Qualitas – all Melbourne based – would be the Tasmania’s priciest, reflecting a sub five per cent capitalisation rate.

The project is replacing a c7322 square metre site made up of several former government owned buildings including the c1847 St Mary’s hospital.

Construction began in 2013 with the final structures – a hotel and office – due for completion in December and next year respectively.

CBRE’s Mark Granter, Kiran Pillai, Michael Simpson and Stuart McCann were the agents.

Parliament Square

Connected to Hobart’s Parliament House, Parliament Square will contain about 26,000 sqm of lettable area.

The bulk – about 17,300 sqm – is contained in two offices including the Salamanca Building which was completed in 2017 and is leased to the state government until about 2037 (the government will also occupy the second commercial complex on a long lease).

A 152-room hotel, set to trade as The Tasman, will be managed by Marriott which signed a 15-year pre-commitment. Retail also forms part of the development, overlooking Murray Street Pier and Sullivans Cove.

The Hobart based fund manager entered due diligence on the property last month, according to The Australian.

Next major CBD investment listed

The Parliament Square deal comes in the week another major Hobart commercial investment – Murray House – is listed for sale by Hexa Group (story continues below).

Murray House has a 2.3 year Weighted Average Lease Expiry.

The three level 2333 sqm retail and office building at 73-81 Murray St is asking $8 million.

On 956 sqm, it has significant development upside, near to several buildings rising more than 14 floors.

“The property benefits from 36.8 metres of street frontage and a favourable Central Business zoning, meaning a variety of outcomes may be explored by a range of buyer groups including investors, owner-occupiers or add value developers,” Colliers’ Leon Ma, who is marketing the asset with Daniel Wolman and Knight Frank’s Richard Steedman and George Burbury said.

“Murray Street is a major carriage-way passing through Hobart’s city centre, and thus experiences passing pedestrian and vehicular traffic,” according to the agent.

“Properties in the immediate vicinity comprise various strip retail premises…office buildings and the State Library”.

Mr Burbury added the state’s property markets have experienced significant investor growth over the past 12 months.

“This is driven by the lack of competing stock, strong tenant demand and no new commercial developments in the pipeline,” he said.

Development outcomes could also include residential or hospitality – the city having four major chains set up there since mid-last year.

More to come.

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Marc Pallisco

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