A Hobart office and warehouse facility fully leased to the state government has hit the market with price expectations in the high $20 million range.
The property at 89 Cambridge Park Drive in Cambridge is being sold via an expressions of interest campaign closing at the end of May.
The 6,897sqm building is fully leased to two government departments on a 10-year weighted average lease expiry, generating an estimated net income of close to two million dollars a year.
The Department of Health, through Ambulance Tasmania and Care@Home, occupies the building, alongside the Department of Justice.
Knight Frank agent Tom Ryan said the property was a defensive play in a tight market.
“This is a compelling government-backed investment offering long-term income security in a market where vacancy is among the lowest in the country,” Ryan said.
“With Tasmania continuing to experience constrained office supply and strong demand for quality accommodation outside the CBD, assets like this are exceptionally tightly held.”
Elders Commercial agent Scott Newton said the scale of the site and the strength of the tenant covenant set the property apart.
“Investors are responding strongly to assets with long WALE profiles and genuine tenant covenants, particularly where future competition is limited,” Newton said.
“The Cambridge precinct has established itself as the state’s primary government and commercial precinct outside the CBD, underpinned by strong connectivity, proximity to the Hobart International Airport and a concentration of nearby major industrial and retail occupiers.”
The 28,080sqm corner site was built in 2008 and includes 5,910sqm of office space, a 987sqm warehouse and 163 car parks.
