 Asset Class: | Industrial |
 Price: | $ 2535000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<p class="mb-4">A modern industrial property comprising approximately 770m² of building area, situated on a significant 1,908m² landholding. The property offers strong income potential underpinned by low vacancy in the Hobart industrial market and scarcity warehouse spaces above 500m2.</p><p class="mb-4">Constructed approximately three years ago, the building features concrete panel construction with approximately 670m² of high-clearance warehouse (9m internal clearance) and approximately 100m² of quality office accommodation. The property's larger than average floor area positions it advantageously against future oversupply risks. Additionally, the low site coverage provides excess hardstand, ample parking, easy truck access, and future expansion opportunities.</p><p class="mb-4">The property is expected to deliver a net return of approximately 6% after management fees. Excellent expected depreciation benefits will significantly enhance after-tax returns.</p><p class="mb-4">The property is offered via a sale and leaseback to RapidClean, a well-established cooperative with nearly 40 years of experience across Australia and New Zealand. The lease is secured with a 5-year initial term plus a 5-year option, providing a stable and reliable income stream. The business has multiple sites within the state, and is selling the building to free up capital for ongoing growth plans.</p><p class="mb-4">Located in Cambridge, Tasmania — a core industrial precinct experiencing high demand and record low vacancy, particularly for warehouses over 500m². The shortage of industrial land across Hobart supports strong rental growth and capital appreciation prospects.</p>
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<p>Cambridge is a highly sought-after industrial precinct in Hobart's eastern shore, strategically positioned with excellent accessibility to major transport routes. This location enjoys proximity to Hobart International Airport and the city centre.</p> <p>The industrial market in Hobart is characterized by <strong>extremely limited supply</strong>, with vacancy rates for warehouses greater than 500sqm close to 0%. This scarcity has created significant upward pressure on rental growth, making Cambridge an exceptionally strong location for industrial investment.</p> <p>The area particularly benefits from its established industrial zoning, strong infrastructure, and reputation as a premium business location for distribution, manufacturing, and warehousing operations.</p>
Additional Location Information File<p><strong>RapidClean</strong> is a well-established Australian and New Zealand-owned cooperative with nearly <strong>40 years</strong> of industry experience. The company comprises over 70 independently owned stores that supply commercial-grade cleaning, packaging, and safety products nationwide.</p> <p>Key strengths as a tenant include:</p> <ul> <li>Strong financial performance and stability</li> <li>National buying power creating business efficiency</li> <li>Commitment to local ownership structure</li> <li>Currently expanding operations within Tasmania</li> <li>Established business with proven longevity</li> </ul> <p>The tenant has occupied the building since its construction 3 years ago, with the premises purpose-built for their operations. They are selling the building to free up capital for business expansion, demonstrating their strategic focus on core business growth.</p>
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<p>This investment opportunity is offered at <strong>$2,535,000</strong> with a compelling net return of <strong>6%</strong> after management fees.</p> <p>The property features a secure tenant on a <strong>5-year initial lease term</strong> with an additional <strong>5-year extension option</strong>, providing investors with excellent income security.</p> <p>As a newly constructed asset (only 3 years old), the property offers <strong>significant depreciation benefits</strong> that substantially reduce the tax payable on income, enhancing the effective yield for investors.</p> <p>Comparable rentals in the area command approximately <strong>$180-$220/sqm</strong>, positioning this property favorably within the market while still providing potential for future rental growth given the tight industrial market conditions in Hobart.</p>
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<p class="mb-4">Rethink's agent contact needs to secure the listing in a competitive situation. </p>
<p class="mb-4"><strong>4 Lockheed Place, Cambridge – 770m2 - $201/m2</strong></p><p class="mb-4"><strong> </strong>1-57 Cherokee Drive, Cambridge – 511m2 - $215/m2</p><p class="mb-4"><strong> </strong>Unit 3, 13-15 Abernant Way, Cambridge – 281m2 - $214/m2</p><p class="mb-4">Unit 1, 13-15 Abernant Way – 493m2 - $212/m2</p><p class="mb-4">Unit 8, 13-15 Abernant Way, Cambridge – 359m2 - $206/m2</p><p class="mb-4">Unit 6, 1 Cessna Way, Cambridge – 557m2 - $204/m2</p><p class="mb-4">237C Kennedy Drive, Cambridge – 1200m2, $206/m2</p><p class="mb-4">Unit 2, 237 Kennedy Drive, Cambridge – 507m2 - $200/m2</p>
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<ul class="bullet-list"><li><p class="mb-4">Prime industrial asset only 3 years old with modern construction</p></li><li><p class="mb-4">Exceptional 9m internal clearance height - well above standard specifications</p></li><li><p class="mb-4">Substantial 1909sqm block with low site coverage, appealing to tenants, but also offering potential future expansion</p></li><li><p class="mb-4">Generous 770sqm building with 100sqm quality office space</p></li><li><p class="mb-4">Established and expanding national tenant with 40-year business history</p></li><li><p class="mb-4">Secure 5-year lease with 5-year option providing income certainty</p></li><li><p class="mb-4">Attractive 6% return on investment</p></li><li><p class="mb-4">Located in Cambridge - one of Hobart's tightest industrial markets</p></li><li><p class="mb-4">Excellent depreciation benefits significantly reducing tax liability</p></li><li><p class="mb-4">Durable concrete panel construction requiring minimal maintenance</p></li><li><p class="mb-4">Room for future expansion on a generously sized block</p></li><li><p class="mb-4">Superior truck access and ample parking/hardstand areas</p></li></ul>
