 Asset Class: | Multi-Tenanted |
 Price: | $ 3900000 |
 Net Yield: | 6.53 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
In Rethink Investing’s most recent podcast, the company tipped well located ‘Suburban Retail Strips’ to be the best performers, particularly with yields above 6%. This opportunity allows investors to capitalise on this expected performance, but also comes with significant upside. <br><br>This dual-title property spans a total land area of approximately 2,256 sqm, strategically situated in the heart of Mowbray’s bustling retail precinct (a retail precinct with zero vacancies). Boasting outstanding exposure to Invermay Road (approximately 20,000 daily vehicle movements), the asset attracts significant retail interest, surrounded by major brands and high foot traffic. With strong population growth forecast for the area, coupled with an attractive subdivision strategy, this property offers significant investment potential.<br><br>The buildings provide a total lettable area of approximately 1,275 sqm. The structures are primarily brick with iron roofing, ensuring durability and minimal maintenance. The asset includes seven retail shops, one office, and an ATM, complemented by ample parking immediately outside and surrounding the building. <br><br>Current net income across both titles is approximately $254,672 per annum (after landlord outgoings including building insurance and management fees), with a solid net yield of 6.53%. The properties provide opportunities for yield enhancement through further tenant optimization.<br><br>The diverse tenant base includes strong national and local brands such as Sonic Healthcare, Integrated Living, Bento, and Noodle Box. Lease terms range from short to long durations, with options to renew, providing stable and predictable cash flows. Of the shorter tenancies, one has recently extended to later this year. The other has the potential to be converted to a bottleshop, which would be positive for this asset.<br><br>The strength of the location and surrounding national tenants provides a very sensible long term hold strategy, which is likely to deliver consistent returns. However, the asset also comes with an attractive uplift strategy via strata subdivision into separate titles (all dividing walls are concrete block at 268-270 Invermay Road so structural building works are not expected). The smaller tenancies are likely to trade around 6% (conservative) or under. The separate titles could then support profitable exit strategies, or refinance requirements as required.<br><br>Situated just 4 km from Launceston CBD, this asset enjoys proximity to major retailers such as Coles, Woolworths, Target, and fast-food chains like Hungry Jack’s, Dominoe’s and KFC. The area benefits from significant local amenities, including the University of Tasmania’s Newnham Campus and the Mowbray Medical Centre. Mowbray is part of Launceston’s designated growth corridor, supported by upcoming infrastructure projects and population-driven developments, ensuring continued economic vitality and tenant demand.<br>
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Mowbray is situated approximately 4 kms from Launceston CBD, via the East Tamar Highway or Invermay Road. Mowbray is serviced by street frontage strip shopping; Mowbray Marketplace, which houses major retailers such as Woolworths Supermarket, Target, Chemist Warehouse, Reject Shop and several other specialty retailers. <br><br>Mowbray also has a recently constructed, free-standing Coles Supermarket; several major bank branches; medical centres; multiple general retailers; Hungry Jacks; KFC; Ampol Service Station; Mowbray Primary School; The renowned Mowbray Racecourse; Mowbray Golf Course, the Northern Campus of the University of Tasmania and the Australian Maritime College.<br><br>Mowbray and the surrounding area is set for substantial population expansion, being located in Launceston’s key growth corridor. Significant subdivision development is set for the neighbouring suburb of Newnham, with the first 700 residential lots in the final stages of planning. This population growth will be supported by infrastructure development, including the ‘Northern Suburbs Community Recreation Hub’ (the Hub) at Mowbray in Launceston<br><br>Launceston is one of the larger regional cities in Australia. It is the second-largest city in Tasmania after Hobart and serves as a significant regional hub in the state's north. With a population of over 90,000 people, Launceston is known for its economic activity, infrastructure, and historical significance. It plays a key role in commerce, education, healthcare, and tourism for the region.<br>
Additional Location Information File264 Invermay Road – Integrated Living Australia Pty Ltd <br>A leading provider of health services throughout regional, rural and remote communities across <br>Australia. Focussing on delivering better health outcomes for Australians, supporting them to live <br>independent and active lives. Providing a range of health and wellbeing services for older people and <br>their families. <br>• 310sqm lettable area <br>• Renewed 3 year lease to 31 October 2027 <br>• Tenancy proportion of statutory outgoings: 55% <br>• Net income: $66,866.88pa + Outgoings + GST <br><br>264 Invermay Road ATM – Next Payments Pty Ltd <br>At Next Payments, we help to streamline our clients’ cash management and reporting processes <br>with our suite of solutions that are designed to deliver significant time and cost savings. With over <br>20 years industry experience, Next Payments leads the way in providing secure payments and <br>technology solutions tailored for hospitality, gaming, retail and financial industries. Our products <br>are world class yet developed with a localised lens and expertise, ensuring they are relevant for their <br>respective jurisdictions. <br>• Lease expires 15 February 2028 <br>• Net income: $7,090.92pa + Outgoings + GST <br><br>264a Invermay Road – 7 star united Pty Ltd t/a Asian Town <br>• 330sqm lettable area <br>• Renewed 5 year lease to 21 August 2028 plus 5 year option <br>• Tenancy proportion of statutory outgoings: 45% <br>• Net income: $46,371pa + Outgoings + GST <br>268-270 Invermay Rd – Sonic Healthcare Limited <br>Sonic Healthcare Limited is the parent company of the many operating companies around the <br>world comprising the Sonic Healthcare group. It is a public company, listed on the Australian <br>Securities Exchange, where it is classified as one of Australia's 'Top 30' companies. <br>• 104sqm lettable area <br>• Renewed 5 year lease to 14 August 2029 <br>• Tenancy proportion of statutory outgoings: 22.45% <br>• Net income: $39,745.32pa + Outgoings + GST <br><br>268-270 Invermay Rd - Community Transport Services Tasmania Inc. <br>Community Transport Services Tasmania Ltd. (CTST) is a state-wide community based not-for<br>profit organisation that provides affordable shared door-to-door community transport. <br>• 62sqm lettable area <br>• Lease expires 28 February 2025 <br>• Tenancy proportion of statutory outgoings: 11.47% <br>• Net income: $24,832.32pa + Outgoings + GST <br><br>268-270 Invermay Rd - Robert Cunningham t/a Cunninghams Buy & Sell. <br>• 63sqm lettable area <br>• Renewed 3 year lease to 21 February 2026 plus 3 year option <br>• Tenancy proportion of statutory outgoings: 11.06% <br>• Net income: $18,295.68pa + Outgoings + GST <br><br>268-270 Invermay Rd - Khehra & Bajwa Holdings Pty Ltd t/a Little Spicy Restaurant <br>Little Spicy Indian Restaurant specializes in North Indian Food – We believe that food <br>should not only please the palate but also the eyes. We love what we do, our wonderful <br>staff, the food we serve, the location we have and the service we provide. We are <br>motivated by our guest's enjoyment. <br>• 280sqm lettable area <br>• 5 year lease to 30 September 2026 plus 5 year option <br>• Tenancy proportion of statutory outgoings: 32.42% <br>• Net income: $49,172.76pa + Outgoings + GST <br><br>268-270 Invermay Rd - Jiazhi Pty Ltd t/a Noodle Box & Supreme Leader <br>Noodle Box is Australia's most loved noodle brand with 90+ restaurants across <br>Australia. Our mission is simple, to inspire nostalgia of the bustling South-East Asian <br>hawker night markets by delivering authentic dishes that pack intense flavours, fresh <br>crunch, fiery heat and unforgettable wok-char. <br>• 63sqm lettable area <br>• 7 year lease to 31 August 2029 <br>• Tenancy proportion of statutory outgoings: 11.37% <br>• Net income: $18,900.00pa + Outgoings + GST <br><br>268-270 Invermay Rd - Bento Franchising t/a Bento <br>Michael Zhicheng Zhang and Kazuhiro Kojima opened their first Bento outlet in <br>Launceston about 18 years ago and opened a second before deciding to franchise the <br>concept. There are now 19 independent franchisee Bento outlets around the state. <br>• 63sqm lettable area <br>• 5 year lease to 31 May 2026 plus 5 year option <br>• Tenancy proportion of statutory outgoings: 11.22% <br>• Net income: $19,887.72pa + Outgoings + GST <br>
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Total income = $291,162.60<br><br>- Less total non-recoverable licensed car parking $12,032.88<br>- Less non-recoverable building insurance estimate $10,500<br>- Less non-recoverable management fee estimate $13,956<br><br>Total net income = $254,672<br>
Additional Financial Information FileInitial Term:
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268-270 and 264 Invermay Road Mowbray - 1275m2 - $199/m2 (blended Zap fitness 395-399 Invermay Road, Invermay, 7248 - 363m2 - $394/m2 Shiploads Retail 395-399 Invermay Road, Invermay, 7248 - 1212m2 - $289/m2 Retail Health Complex, 139-143 Hobart Road, Kingsmeadows - 1350m2 - $293/m2 171-173A Elphin Road, Elphin - 251m2 - $375/m2 Unit 8, 70 Charles Street, Launceston - 47m2 - $673/m2 104 Charles Street, Launceston - 219m2 - $593/m2 * Mowbray is a strong retail performer and tightly held, making comparables hard to find. However, rents appear very reasonable versus the average in Launceston.
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• Outstanding offering on the bustling Mowbray retail strip, with ample parking surrounding. Excellent exposure to the main road making it very attractive for current and future retail tenants. <br>• Ideally located immediately between Coles and Woolworths, adjacent to Hungry Jacks, and near KFC and the Mowbray Hotel – all providing very strong exposure (the retail precinct has zero vacancies).<br>• High visibility with approximately 20,000 daily vehicle movements.<br>• Spread across 2 titles, the asset provides 7 retail shops, one office and one ATM – across an approximate lettable area of 1,275m2 (2,256 m2 land area)<br>• Neat and tidy from a building construction point of view, providing very little in ongoing maintenance.<br>• Diverse tenant mix with secure leases and strong brand-name occupants including Sonic Healthcare, Integrated Living, Bento, Noodle Box plus popular local operations. <br>• All outgoings are recovered from the tenants except for building insurance (estimated at $10,500p.a.) and property management (quoted at $13,956p.a).<br>• Strategic potential for strata subdivision and future value uplift, and/or a very reliable long term hold for capital gain.<br>• Positioned in a key growth corridor of Launceston with nearby infrastructure and residential development.<br>• With a population around 100,000 people, Launceston is one of the larger regional cities in Australia.
