The 66 – 80 Collins Street
66 – 80 Collins Street, Hobart
An A-Grade freehold office building constructed in 1997, this property was purchased in 2019 for $35.15 million.
The property
Features at the time of purchase included:
Centrally located in Hobart’s CBD on the southern corner of Argyle and Collins Street, with 10,037m2 NLA.
Securely leased to six tenants, including Telstra and The Tasmanian State Government who occupy 85%.
55 carparks onsite.
Immediate proximity to the Elizabeth Street Mall (a main shopping district) and opposite The Royal Hobart Hospital, Hobart Private Hospital and Hobart GPO.
The investment
The original investment strategy highlighted the need to:
Take advantage of a ground floor vacancy and planned 2019 second floor vacancy to add refurbishments and create open plan office accommodation.
Activate the ground floor to target traditional retail tenants and enhance building appeal.
Capture the potential for short-term rent revision due to below market rents.
Realise the potential to move tenants within the building, vacating upper levels which possess amazing views and natural light and could command much higher rental rates.
| Address | 66-80 Collins Street, Hobart |
|---|---|
| Acqn Date | 25 November 2019 |
| Lettable Area | 10,037 m2 |
| Passing Net Income | $2.51 m pa |
| Est Fully Leased Net Income | $2.803 m pa |
| Building Replacement Cost | $60.0 m |
| Purchase Price | $35.15 m |
| Property Yield on Passing Income | 7.1% |
| Property Yield on Fully Leased Net Income | 8.0% |
| Equity Raised | $21.81 m |
