 Asset Class: | Industrial |
 Price: | $ 5350000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: |
A well-positioned mixed-use industrial property with a significant landholding of approximately 8,492m², located in Glenorchy (a suburb of Hobart located 10 km northwest of the CBD). The property offers strong income security with an established tenant and excellent access via the Brooker Highway. The estimated land value of the site is estimated at circa 80% of the negotiated price, which represents excellent buying, providing many advantages including <span style="font-style:normal;"><b><u>tenant security, rental upside, and development upside</u></b></span> in the medium to longer term. <br><br>The property comprises a mixed-use building with a total gross lettable area of approximately 3,448 m², including a retail showroom (1,488 m²), warehouse (1,186 m²), and workshops/stores (774 m²). The site features 34 on-site car parks, a truck wash bay, and a hardstand component, with a clear span warehouse offering a clearance of 5.7 m – 10 m. The site also shares a unique feature which is particularly appealing to trucking and logistics companies –large vehicle manoeuvring. The ability to drive in one driveway and out another, makes vehicle movement fast and efficient. <br><br>Whilst the title is technically strata titled, the only common area is the southern driveway, shared with one other title. There is no active body corporate, the two titles simply share responsibility for maintenance of the driveway. <br><br>The property generates a net income of approximately $322,745 per annum (after non-recoverable management fees estimated at circa 3% p.a.), and a net return of 6%. The lease provides for fixed annual rental increases of 3% or CPI, ensuring long-term income growth. <br><br>Fully leased to Tas Trucks Pty Ltd, a leading transport and material handling operator. The tenant has been operating 40 plus years, with multiple sites around the state of Tasmania. The 2023 sale of the business and freehold, has seen a renewed business vision and investment. The vendor is now selling the freehold to free up capital for further investment into operations. The lease has a remaining term of approximately 3.5 years, expiring in July 2028, with a five-year option to 2033. The tenant covers all outgoings (excluding management fees), providing a secure and low-maintenance investment. Given very limited sites and warehouses available of this size, extremely low rent, and strategic plans of the business – it would seem highly likely they extend their tenure to 2033 and beyond (this is confirmed by the understanding that multiple owner occupiers have made offers on the site, with the request for the tenant to vacate in 3.5 years – which was rejected). <br><br>Strategically positioned in a well-established industrial and commercial precinct, the property benefits from excellent connectivity via the Brooker Highway. It is situated only 300 m from Glenorchy’s retail hub and 10 km from Hobart’s CBD, ensuring strong demand from industrial and retail operators. The area continues to experience industrial growth and low vacancy rates, underpinning long-term investment appeal.<br><br><b><u>Upside</u></b><br><br>This asset comes with significant upside, supported by a significant land holding, scarcity of supply of similar assets, as well as rents which are well below market. Market rent for the property is conservatively $120/m2+. A rental adjustment to $120/m2 in 3 years time, equates to approximate capital upside of $1.5 million plus (in today’s dollars).<br><br><br>Further longer term upside opportunities include renting out different buildings separately, thus commanding higher per m2 rates, than would be possible with one tenant. <br><br>The current replacement value is estimated at circa $11 million to $12 million, which provides this asset significant security, but also upside given the land value is estimated at $4.2 million plus. <br>
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Glenorchy is a key industrial hub within Greater Hobart, offering excellent connectivity and a well-established commercial infrastructure. Positioned approximately 10 km from the Hobart CBD, the area benefits from direct access to the Brooker Highway, the state's primary transport route, ensuring seamless distribution to all major population centres. Its strategic location makes it a highly sought-after destination for businesses requiring efficient logistics and proximity to key markets.<br><br>Industrial land in Glenorchy is in high demand, with Hobart experiencing historically low industrial vacancy rates, making well-positioned sites particularly valuable. This scarcity, coupled with ongoing economic growth, has driven strong occupancy levels and rental stability. The area's accessibility and infrastructure make it especially attractive to trucking and logistics operators, as properties in Glenorchy typically offer generous yard space, ease of vehicle movement, and proximity to arterial roads. These attributes position 94 Grove Road as an ideal investment within Tasmania’s constrained industrial market.<br>
Additional Location Information FileFRM has been in the game for more than 40 years. We’ve recently refreshed our brand and become Tas Trucks. We think this new name and brand better align with our evolving vision. <br><br>With locations in Launceston, Hobart, and Devonport, and representing industry leading brands such as Hino, Manitou, Linde, Baoli, Hyundai, as well as Kanga, Safetech and Macrack, we are here for Tasmania’s today and Tasmania’s future. <br><br>Our mission is clear: to be your trusted partner, delivering specialised solutions to the transport and materials handling sector, providing quality products and service, an experience you can count on. <br>Safety is paramount in our operations. Through fostering a culture of safety and well-being, we ensure the welfare of our team while enhancing productivity and delivering the very best service to our valued customers. <br><br>At Tas Trucks, we are motivated by your satisfaction, whether it’s the purchase of a new truck, or piece of materials handling equipment, sourcing the right part, or keeping your vehicles and equipment in great shape, we embrace every interaction with a sleeves-rolled-up attitude. <br><br>As new opportunities emerge across the state, we stand ready to play our role in moving Tasmania forward.<br><br>Intell from Rethink contacts –<b> “This business has operated statewide for over 40 years, previously trading as FRM. The vendor purchased the business and freehold in 2021. He has re-branded the business statewide to Tas Trucks and implemented a number of new strategies which have increased the profitability of the business. He has spent approx. $2m on improvements, upgrading his Launceston premises. Recently won a National award for Hino regional dealer of the year, and is has just been appointed as the Tas dealer of MAN and Western Star trucks dealer. The operator has expressed their intention to stay at this location”.</b><br>
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94 Grove Road, Glenorchy – 3,448m2 - $96/m2 Address Suburb Date Net Income Building Size Rent / m2 8 Mill Lane Glenorchy 16-Dec-2022 $ 160,000 1,100 145 33-35 Federal Street North Hobart 16-Dec-2022 $ 142,199 800 178 1 Railway Court Cambridge 19-Dec-2022 $ 271,500 1,880 144 82-86 Gormanston Road Derwent Park 30-Jun-2023 $ 600,000 6,000 100 263 Kennedy Drive Cambridge 15-Mar-2023 $ 371,318 2,434 153 8 Birdwood Avenue Derwent Park 20-Dec-2023 $ 683,000 4,600 148 3 & 5 Cessna Way Cambridge 15-Mar-2023 $ 370,000 2,072 179 1045 Cambridge Road Cambridge 22-Feb-2022 $ 95,000 717 132 229 Kennedy drive Cambridge 2-Nov-2022 $ 147,000 1,223 120 9 & 9A Lampton Avenue Derwent Park 15-Dec-2023 $ 167,640 900 186
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• Prime industrial location with direct access to Brooker Highway, enabling seamless access to the north or south of the state. <br>• Large site of approximately 8,492 m² zoned ‘Light Industrial’, in a prime northern suburb location. <br>• Site is very well suited to trucking or logistics companies.<br>• Mixed-use building with a total gross lettable area of approximately 3,448 m², consisting of:<br>o Retail showroom: 1,488 m²<br>o Warehouse: 1,186 m²<br>o Workshops/stores: 774 m²<br>• Fully leased to Tas Trucks Pty Ltd, a leading transport and material handling operator. The operator has been established in excess of 40 years, with multiple sites around the state. <br>• WALE of approximately 3.5 years, lease expiring July 2028, with a five-year option to 2033<br>• Net income of approximately $322,745 per annum (after non-recoverable management fees estimated around $10,000 p.a.)<br>• Whilst some buildings quality reflect their age, buildings of high quality are less relevant to logistics tenants (the exception would be office or customer facing areas, which are of a more modern quality with this asset)<br>• Fixed annual rental increases of 3% or CPI, ensuring strong income growth<br>• 34 on-site car parks providing ample staff and customer access<br>• Strong industrial market with low vacancy rates, supporting long-term investment appeal<br>• Close to Glenorchy’s retail hub, only 300 m from Main Road and 10 km from Hobart’s CBD<br>• The asset comes with significant rental upside which can be unlocked in 2028, likely resulting in a significant capital gain. Conservative estimates indicate a gain of $1.5 million plus. It is understood the vendor is well aware of a rental increase in 2028. <br>• Significant land value of circa $4.2 million ($500/m2). <br>
