Colliers and Elders have sold Glenorchy Plaza, a Tasmanian Big W anchored shopping centre, to a local buyer for $19.75 million.
Located 8km north-west of Hobart, the plaza was built in 2005 and is anchored by a Big W and supported by 14 complementary tenancies that include Australian Hearing, Hobart Pathology, Radiology Tasmania and Flight Centre.
Competition from interstate investors, predominantly from Victoria who have Tasmanian assets within their portfolio, highlighted the growing retail investor appetite given the strong retail fundamentals afforded by Hobart. The centre was ultimately acquired by a local Tasmanian family prior to the ‘on market’ campaign.
The Colliers team of James Wilson, Tim McIntosh and James Lawson were appointed exclusively on behalf of vendor, Elanor Investors. Colliers then secured the transaction prior to a formal on market campaign launch in conjunction with Elders Hobart.
“Colliers executed the transaction prior to an on market EOI campaign in Q1 2024, with interest for the centre being generated from a combination of private investors and fund managers based in Melbourne and Sydney,” Wilson said.
“Historically the national retail investment market has recorded one DDS anchored shopping centre annually. Investors target the retail sub sector typically due to their comparatively attractive yield afforded despite ASX top 10 majors covenant, combined with the large strategic landholding they occupy.”
The 8,276 square metre centre was sold at a market yield of 7.5% and comes with a WALE of 2.1 years and over 300 parking spaces.
“More than 50% of Tasmanian retail investments above $10 million are owned by Victorian private investors. The cohort of Victorian investors seeking out retail assets in Tasmania that are backed by ASX-listed tenants has increased substantially in the last two-years, driven by the tightly held nature of retail investments across Victoria,” McIntosh said.