Sydney-based property investment company STRADA Group has sold the Henty House CBD office building in Launceston for $22.525 million.
A Melbourne-based syndicator acquired the five-level property at 1 Civic Square, offering 4,678 sqm of net lettable area on a 2,517sqm site.
The asset was located in the central Civic Precinct near Royal Park and the Tamar River waterfront, generating a net annual income of more than $1.523 million.
Henty House was purpose built for the Tasmanian Government in the early 1980s and was leased to both the state and federal government, offering a weighted average lease expiry (WALE) of more than six years.
Occupiers include include Health and Human Services, Justice, Treasury and Finance, Premier and Cabinet, Police, Fire and Emergency Management in addition to the Federal Government on a new 15-year term.
CBRE’s Melbourne Capital Markets Office team of Tom Ryan and Scott Orchard jointly negotiated the transaction with Tim Johnstone and Scott Alexander of Hobart-based agency Edwards Windsor.
Ryan said that despite current market uncertainties, buyers were 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,” 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.”
“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,” Orchard said.