- 1 Civic Square has been leased to both the statye and federal goverments
- Was originally built in the 1980s for the Tasmanian government
- CBRE says the sale shows investors are still in the scene despite higher interest rates
A major Launceston CBD office building known as ‘Henty House’ has been sold to a Melbourne-based syndicator for $22.53 million.
Tom Ryan and Scott Orchard, from CBRE’s Melbourne Capital Markets Office team, jointly negotiated the transaction with Tim Johnstone and Scott Alexander of Edwards Windsor, a Hobart-based agency.
The 1 Civic Square property, a five-level building, was purpose-built for the Tasmanian government in the 1980s, and is leased to both the state and federal governments. It offers a weighted average lease expiry (WALE) of over six years.
STRADA Group, a Sydney-based property investment company, owned the asset.
The building occupies a 2,517 sqm site, with a net lettable area of 4,678 sqm, and generates a net annual income of over $1,523,000.
Mr Ryan noted that despite current uncertainties across the market, buyers are still continuing to pursue quality investment opportunities.
“There is no question that buyers are reassessing their strategies and expectations following the significant change to the interest rate landscape,” Mr Ryan said.
“However, while the depth of interest has reduced, there is continued confidence in the market and solid transaction outcomes are occurring led by investors wanting to stay ahead of an anticipated buyer resurgence in the new year.”
Tom Ryan, CBRE
Government occupiers of Henty House include Health and Human Services, Justice, Treasury and Finance, Premier and Cabinet, Police, and Fire and Emergency Management.
CBRE’s Mr Orchard added, “While sale results have been limited through the middle part of the year as a market adjustment plays out, there is still considerable local, national and international capital looking for opportunities in prime and alternative markets as demonstrated by the sale of Henty House.”
