 Asset Class: | Other |
 Price: | $ 3800000 |
 Net Yield: | 7.60 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<span style="color:rgb(0, 0, 0);">96 Tasman Highway in Swansea, Tasmania, presents an exceptional investment opportunity with diversified income streams. Occupying a prominent 4,452 sqm site along the popular Great Eastern Drive, this property is a core commercial asset for Swansea, drawing in both local residents and a growing tourist market. The business has been run by the current operators under management for the past 16 years, and is now available via leaseback.</span><br><br><span style="color:rgb(0, 0, 0);">The property spans approximately 1,395m2 across its main facilities, including a bakery, bar, bottleshop, and vacant museum at the rear. Modernized interiors feature durable timber and concrete finishes, with efficient climate control and a well-designed bar layout for streamlined operations. Situated on a 4,452 sqm site, the property includes ample parking and additional land at the rear, providing development potential that could enhance future revenue.</span><br><br><span style="color:rgb(0, 0, 0);">With a net income of $290,000 per annum and a 7-year WALE, this property offers a secure and attractive return for investors. Its strategic location on a high-traffic tourist route and dual-income streams from separate leases contribute to a strong yield, creating robust asset performance.</span><br><br><span style="color:rgb(0, 0, 0);">The tenant operates two key leases. The primary lease covers the bar, bottleshop, and part of the museum, generating an income of $220,000 annually, with annual CPI increases. This lease includes 2x7-year options, supporting long-term tenant stability. The secondary lease includes the bakery, generating $70,000 per year with similar rent terms.</span><br><br><span style="color:rgb(0, 0, 0);">As a well-established business catering to both locals and tourists, The Bark Mill Bar & Bottleshop has a consistent growth in turnover with sales in excess of $4,400,000, supported by both local patronage and the increasing tourism numbers. Sales for the Barkmill Bakery for the past year being in the vicinity of $650,000.</span><br><br><span style="color:rgb(0, 0, 0);">Swansea’s premier position on Tasmania’s East Coast—along the scenic Great Eastern Drive—makes this a prime location. This area is a popular destination for domestic and international visitors, supported by a 31% increase in visitor numbers in 2023. The surrounding region is experiencing strong economic growth, low unemployment, and robust demand in the hospitality sector. With proximity to key attractions and infrastructure, this location ensures a steady flow of customers, while Swansea’s established tourism market further strengthens the property’s investment appeal.</span>
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<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Services the township of Swansea</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Main Licensed premises servicing Swansea</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Close to the main commercial strip of Swansea</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Within the “Great Eastern Drive”</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Incorporates the history of Swansea’s timber industry</span></p></li></ul><br>*Approximate
Additional Location Information FileThis is tenant info<br>With some<span style="color:rgba(242, 69, 140, 1);"> formatting</span><br>
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Additional Financial Information FileInitial Term:
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Hotel "Date Sold" Leasehold Price "Lease Term Yrs" "Annual Turnover" GP % "Net Rent" "Rent to T/O %" "Ingoing To T/Over %" "Rent Reviews" "Net Profit For 2" "Net Return %" Comments New Sydney 8/20 475,000 20 3,155,214 59.2 250,000 7.92% CPI 448.442 94.4 Bar & Food Bridport 6/21 575,000 11 2,138,565 56.9 193,206 9.03% CPI 224,138 39.0 2021 T/O around $3 million Soho 6/21 105,000 15 1,661,755 66.5 149,136 8.97% CPI 128,011 121.9 2019 figs - covid & fire affected Barkmill Tavern (subeject property) 5,050,000 290,000 5.74% The primary way to assess rent on pubs, is a percentage of turnover. A % of between 6.5% to 7% is considered a competitive rate in the hospitality industry. The rent for the subject property is relatively low, which would be considered under market rent (Bridport would be considered the best comparable above. There is strong potential for upside at the end of the lease term.
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<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">100% leased returning approx. $290,000 plus GST p.a. Represents an impressive net yield of 7.6%, with the tenant covering 100% of the outgoings. </span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">WALE of 7 years providing great income stream and security.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Main Licenced premises servicing the east Coast township of Swansea</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Due to a breakdown in ownership syndicate, the property is available via sale and leaseback. The owners will continue to own and operate the business. Due to profitability, it is unlikely the owners would walk away from the business, however it would be very popular to purchase if ever up for sale</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Very experienced operators, who have developed a high turnover and profitable business (financials can be made available during due diligence). </span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Separate Lease for the Bar & Bottleshop & Bakery</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Refurbished Building catering for locals and tourists</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Sufficient parking to accommodate peak tourism and local demand.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Rental upside potential exists at the end of the lease expiry, due to the current rent being under market parameters. </span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Additional land (ex-museum) at the rear offers expansion possibilities, well-suited for new amenities that can enhance property revenue. </span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Due to being unable to cope with demand for meals during peak periods, the operators plan to expand the seating area internally.</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Situated on the “Great Eastern Drive” being the key tourist route for east Coast of Tasmania. Strong Tourism growth in Tasmania over the last 5-10 years, which continues to strengthen.</span></p></li></ul>
