One of Tasmania’s most significant commercial property holdings is set to test investor appetite, with Cimitiere House and the adjoining heritage office at 34 George Street, Launceston, being offered to the market via Expressions of Interest.
The asset is being marketed by Shaun Venables, Matthew Wright and George Wilkinson of CBRE, together with David Webster and Cale Ayres of Elders Commercial.
Located at 113-115 Cimitiere Street and 34 George Street, the asset comprises a five-level A-Grade office building and a redeveloped Victorian Italianate office property across a combined 3,255sqm CBD landholding. Together, the properties provide 5,257sqm of net lettable area and 70 on-site car spaces.
Mr Venables said the offering represented one of the most compelling office investment opportunities to come to market in Tasmania this year.
“This is a rare opportunity to secure one of Launceston’s landmark office assets, combining a modern A-Grade commercial building with a beautifully refurbished heritage office property on a substantial CBD landholding,” Mr Venables said.
“With 100 per cent occupancy, a 6.2-year WALE, a strong government income profile and significant on-site parking, Cimitiere House offers the type of scale, covenant strength and income security that is increasingly difficult to find in regional markets.
“We expect the property will attract interest from a broad range of private, institutional and interstate investors seeking exposure to Tasmania’s strongest office market fundamentals.”
David Webster of Elders said the development of the office complex property, known as Cimitiere House, when constructed, required the incorporation of 34 George Street property to provide the ratio of car-parking required to obtain development approvals. Cimitiere House was designed and constructed to green credentials ultimately becoming one of the first green buildings in Tasmania.
One of only two major office developments in the immediate street-scape, Cimitiere House views toward the recently constructed St Lukes building together with the Verge Hotel and the under construction 179* room Fragrance Hotel ($60 million) development.
The Cimitiere House and 34 George Street complex was acquired by the vendor early 2012.
Completed in 2009, Cimitiere House carries a five-star NABERS Energy Rating and has benefited from significant capital investment over recent years. More than $6.5 million has been invested across the asset, including tenant fitouts and building upgrades, positioning the property as one of northern Tasmania’s leading commercial office offerings.
The property is fully leased and generates a net income of approximately $1.98 million per annum, supported by a diverse tenant mix led by the Tasmanian Department of Health. The government tenant accounts for more than half of the property’s income, with other occupiers including Rae & Partners, GHD, Timberlands Pacific and Rural Press.
The sale comes as Tasmania continues to attract investor attention on the back of major infrastructure investment and economic growth, with Launceston benefiting from a pipeline of public and private sector projects that are reshaping the city’s commercial landscape.
The property is being offered for sale via Expressions of Interest closing at 3pm AEDT on 11 November.
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