A Hobart office and warehouse facility fully leased to the Tasmanian government has sold for $28.05 million.
Selling agents said it was one of Tasmania’s biggest commercial property deals this year.
The 89 Cambridge Park Drive property in Cambridge was purchased by an interstate investor.
The sale followed an expressions of interest campaign that attracted 132 enquiries and eight formal offers.
Selling agents Knight Frank and Elders Commercial said the property generates close to $2 million in rental income a year.
The 28,080sqm site includes a 6,897sqm building. It has 5,910sqm of office space, a 987sqm warehouse and 163 car parks.
The Department of Health accounts for 68% of the building through Ambulance Tasmania and Care@Home.
The Department of Justice occupies the remaining 32% through WorkSafe Tasmania and the Consumer, Building and Occupational Services (CBOS).
Knight Frank agent Tom Ryan said the campaign attracted strong interest from investors.
He said the sale had also reinforced the appeal of Tasmania’s office market, where vacancy remained low and new supply was limited.
“It was a highly competitive sales process and the transaction, which is one of the largest in Tasmania this year, highlights the strong investor appetite for government-backed assets in Tasmania,” he said.
“Buyers were particularly drawn to the strength of the tenant covenant and secure income underpinned by essential public services, with a long lease in place to the Tasmanian state government and a WALE of 10 years.”
The property, built in 2008, was put on the market in May, with expectations it could fetch more than $20 million.
