Hobart‘s Freedom Furniture Store on the Market

Hobart’s only Freedom Furniture store has been listed for sale as retail investments hit record levels and the Tasmanian capital thrives amidst a circa $2 billion development boom which has seen the construction of new apartment buildings driven by a rapidly increasing population.

According to the marketing agents, Savills Pat De Maria and Tom Forrest and LJ Hooker‘s Mark Devine, the property will be sold subject to a 10 year lease (expiring 2022) to Freedom Furniture, which has 60 stores across Australia & New Zealand, at an annual net income of approximately $376,000.

Located at 80 Brisbane Street, the property comprises a 2,023 square metre, single level showroom with both basement and at-grade parking for 27 vehicles on a strata site of 2,904 square metres.

The property occupies a prime location within the heart of the CBD with an extensive 77 metre frontage to Brisbane Street and is strategically situated between Murray Street and Elizabeth Street, Hobart’s two main thoroughfares.

Neighbours include a plethora of national retail brands including Harvey Norman, BBQs Galore, Godfreys, Forty Winks and Mitre 10, while a nearby 430 unit apartment building (under construction) provides evidence of the City’s rapidly growing population.

Mr De Maria said the sale presented a great opportunity to invest in Hobart at a time when the city was in the midst of one of the largest development booms in its history with around $2 billion in office, hotel, residential, retail and educational development including a partly completed $100 million Myer redevelopment, $148 million in new medical science buildings, the $366 million Royal Hobart Hospital redevelopment and the $90 million Academy for Creative Industries (UTAS) project.

“The property could not have been placed on the market at a better time with Hobart in a rapidly evolving development phase which is providing exceptional growth potential for established retailers.

“Retail investment nationally is currently running at $7 billion to $8 billion a year, bolstered by a high level of off-shore investors - as well as local institutional and private investors - which has intensified competition and driven yield compression.

“We expect a strong response from the market for what is obviously a very well credentialed retail investment,” Mr De Maria said.

Mr Devine said Freedom Furniture benefitted from a large main trade area accommodating nearly 50,000 residents supplemented by an additional 163,000 people across Greater Hobart.

He said the residential catchment was further bolstered by Tasmania’s international tourism numbers which increased by 13 percent over the previous 12 month period generating expenditure of $368 million, an increase of 23 percent.

He said the property’s strong catchment added further to the already substantial investment credentials which included:

• the prime inner CBD location
• the location in a rapidly evolving capital city;
• the secure tenancy profile with a leading national retailer
• the extensive street frontage
• on-site parking.

The property is zoned Precinct 22 Central Business under the Hobart Interim Planning Scheme 2015 which allows for a number of alternate uses including business and professional services, food services, general retail and hire, hotel industry, residential and visitor accommodation. Discretionary uses include bulky goods sales, equipment and machinery sales and hire.

The property will be sold by Expressions of Interest closing Wednesday, November 16 at 4pm.