Hobart might be Australia’s smallest capital city but it’s a giant when it comes to attractions.
Not only is it the only place in Australia that can claim a home-grown European royal (Queen Mary of Denmark) but the majesty of its stunning natural beauty made it world famous long before the Danish coronation.
MONA, the Museum of Old and New Art, the Salamanca Market, Battery Point and the breath-taking Mount Wellington/Kunanyi draw visitors all year round to the Tasmanian capital.
John Blacklow, from Knight Frank, is marketing a stunning attraction in the investment sphere, right in the heart of the Hobart CBD.
The seven-levels of 96 Bathurst Street cover three street frontages and include 122 rooms leased to Vision Hotels.
The property is being sold by the University of Tasmania, who bought it six years ago to facilitate more accommodation for students.
COVID flattened that market and the building is now surplus to the university’s requirements.
“We’re marketing the whole building subject to the existing leases,” Mr Blacklow said.
“So it’s an investment with a current return of about $1.15m.
“Hobart's tourism industry is booming, making this building a highly sought-after investment opportunity.”
Mr Blacklow said the property was built in the 1970s and was substantially renovated during the last five or six years, with the addition of a new top floor in 2019 which increased the room capacity from 101 to 122.
The building covers 1813 square metres and contains a ground floor hotel, office and retail facilities, six upper levels of accommodation, and a rear car park.
Vision Hotels currently operate the building as the Allurity Hotel and sub lease part of the ground floor to Area 52, a well-known Hobart retail store.
Other ground floor tenants include the Cool Wines bottle shop and the university’s student services hub.
The University of Tasmania paid $23.5m for the building in 2018 and spent more than $7m on major renovations.
While Knight Frank is not publicising an indicative price, Mr Blacklow said the property had to be sold and he was listening to all offers.
He said Vision Hotels had a lease on the ground floor reception and six upper floors of accommodation until 2031 so the property would remain as an investment for new owners until then.
“Seven years down the track whoever owns the investment can then operate the hotel because all the plant and equipment of the property – including the beds – are currently owned by the university and would transfer to the new owner in 2031.
“It’s a substantial building in a prime location, right in the heart of Hobart's CBD, making it a highly desirable investment opportunity.
“With a mix of hotel, office, and retail facilities, there are multiple sources of income for the owner.
“With the long-term lease to Vision Hotels, the property provides a stable and reliable income stream for the owner, while there is a diverse mix of tenants on the ground floor.”
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