NUBCO SECOND BITE
JARRAD BEVAN
IN April, three Tassie Nubco premises were sold under the hammer amid competition from investors.
A number of them missed out, but they are about to get another bite at the Tasmanian hardware carrot.
Burgess Rawson will hold its next investment portfolio auction in mid-May with an award-winning glazing business and three more Nubco assets among the 28 to be sold under the hammer.
The auction will feature a combined total portfolio of about $100m.
Burgess Rawson sales executive Beau Coulter said given the competition at the previous auction for the Nubco premises, he expected them to catch the eye of investors in May.
“We envision these to be popular assets again with the Coventry Group lease covenant (Nubco is a subsidiary) and terms the same as the previous properties that were offered for sale,” he said.
“Property fundamentals including rents, size, age and location all play a part in terms of price and investors’ appetites for each asset.
“Our vendors’ motivation is still high to transact to move on to other ventures.”
In April, the Nubco assets were sold separately and purchased by private investors from Melbourne with Kingston fetching $4m, Wivenhoe (Burnie) $1.25m and Mornington $2.085m.
Mr Coulter said there were clearly a number of under bidders that missed out in April.
“We would expect these investors to consider these properties again, however given the current demand for ASX-listed properties nationally and heightened demand for Tasmanian properties, we are receiving new inquiries daily on all of the properties, including inquiry from firsttime commercial investors.
“The level of inquiry across all of the Tasmanian assets at last month’s auction was extraordinary and we expect that the line-up this month will generate the same interest.”
Nubco sites at Derwent Park,
Devonport and Invermay are set to be sold alongside GP Glass.
Mr Coulter described GP Glass as an award-winning Tasmanian commercial and residential glazing business, based in the northwest of Tasmania.
He said the property was to be sold with a 10-year lease from April 1, 2021 and with a net income of about $135,450 per annum as well as 3 per cent annual increases.
“The property sits on about 4859sq m of land and has a building size of 1935sq m featuring a single-level workshop, office and showroom,” he said.
Burgess Rawson director Billy Holderhead said the portfolio will include essential service and convenience investments with childcare, fast food, retail fuel, government, liquor, medical and a bank.
He said essential service and convenience retail investments were among the most coveted.
Mr Holderhead described the forthcoming portfolio as “comprehensive, both in property type and price point, which will attract plenty of interest”.
The auction will be held on May 12 from 10.30am at the Crown Casino.