Mercury (Hobart) - Property
KOSATEN SITE SALE
A BATTERY POINT property leased to a successful Japanese restaurant is expected to be a hit at auction next week.
Unit No.15 at 13-17 Castray Esplanade is the home of Kosaten Japanese, a ground floor restaurant in a historic sandstone building in Tassie’s premier suburb.
For an investor, the combination of a prestige location, a rare 15-year lease term and the quality of the tenant is sure to be attractive.
Burgess Rawson senior sales executive Matthew Wright said it was “extremely rare” to see a lease of this calibre offered in the market, anywhere in Australia, let alone in world renowned and tightly held Salamanca.
“The secure, 15-year net lease with fixed 3.5 per cent increases make this a great investment opportunity,” he said.
“And the tenant is strong, being an industry-leading Tasmanian restaurant that has now moved into the national spotlight.”
From a local perspective, Knight Frank’s Claude Alcorso said Kosaten had “changed the landscape” with its quality fit-out and food.
“It has quickly become a Hobart institution,” he said.
“It’s an outstanding opportunity for local and interstate purchasers to own a piece of the esteemed Salamanca precinct. These investments are rarely offered to market.”
The 210sq m Kosaten restaurant features a $750,000 fit-out.
The restaurant is known for its playful approach to a classic sushi train allowing patrons to order a la carte via an iPad. Dishes are delivered directly from the kitchen to the diner “bullet train style”.
Kosaten is also renowned for featuring fine Tasmanian produce where possible.
Mr Wright said there has been a “flight to quality” from investors seeking quality commercial properties, which Kosaten provides.
He said the latest CommSec report provided further evidence of Tasmania’s economic strength.
“This is translating into strong demand for Tasmanian commercial properties,” he said.
“Given the demand we are seeing for quality stock, the current lack of stock and an aggressive marketing campaign, we are continually achieving or exceeding vendors expectations.”
The auction of this property and many more from all over the country have been moved from August 4 to August 11 due to lockdowns in Sydney and restrictions in Melbourne.