Elders Commercial announced that they have facilitated the sale of Glenorchy Plaza for $19.75M, on behalf of Elanor Investors Group (ASX: ENN).

The fully leased high-profile neighbourhood centre was sold by Elders Commercial agents George Burbury and Scott Newton and reflects a market yield of approximately 7.5%. 

Mr Burbury said ‘Glenorchy Plaza was purchased by a Tasmanian private family office who Elders Commercial transact with regularly’

“The sale of Glenorchy Plaza in Hobart’s Northern suburbs is another indication of the attractiveness of the overall Tasmanian commercial market with purchasers able to buy properties significantly below replacement cost.”

“Contrary to some other parts of the country, the Hobart commercial property market has seen another strong 12-month period, and in particular the retail investment sector.”

Mr Burbury said Glenorchy Plaza’s anchor tenant is Big W, with flagship specialty tenants including Flight Centre and Radiology Tasmania.

“Glenorchy Plaza is a two-storey building comprising a ground level carpark, multiple external facing specialty shops, and a small internal mall with four specialty shops, and large rectangular tenancy on level one occupied by Big W.

“There are 302 car parks, of which 205 are undercover, and a further 350 spaces in the Glenorchy City Council carpark opposite.”

Mr Burbury said that while increased interest rates have resulted in less discretionary spending, the Glenorchy Plaza tenancy mix - mainly medical, convenience and service retail - has resulted in the centre continuing to perform strongly. 

“Greater Hobart’s retail centres are performing well, with major centres such as Channel Court Shopping Centre and Cat & Fiddle Arcade either fully occupied or very close to it. 

“With limited retail vacancies coming to the market and very little new stock under construction it’s likely that retail vacancy rates in neighbourhood centres will remain low and rental growth will occur as national tenants continue to expand to Tasmania.’ 

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