Melbourne bidders snap up Nubco properties

Published on: 7 April 2021

ALL of the Tasmanian properties that were put under the hammer at the Burgess Rawson Investment Portfolio Auction were sold.

The Nubco assets were sold separately and purchased by private investors from Melbourne.

The Kingston property fetched $4m, Wivenhoe (Burnie) $1.25m and Mornington $2.085m.

All of the 26 properties in the portfolio were sold for a combined value of more than $109m.

Burgess Rawson sales executive Beau Coulter said there was a clear under supply of freehold investment properties across Tasmania.

“We saw increased interest in Tasmania from the geographic spread of 21 registered bidders from Victoria, Queensland, South Australia, New South Wales, Tasmania and South Africa, too,” he said.

“On the day, the three Nubco properties were strategically placed in the order of sale to ensure maximum participation from bidders including those who had missed out of other similar properties.

“For example, the under bidder of Carls Jnr in Thomastown (placed before Kingston) who previously had not considered the property, bidded strongly on the Kingston Nubco. This pushed the property hundreds of thousands over the reserve.

“The under bidder of a Shell petrol station in Adelaide was looking to spend around $2m and ended up bidding on Mornington Nubco, again driving the sale price well above reserve.

Mr Coulter said reserves were well exceeded by over 12 per cent across the board.

“Demand outweighed supply by six times, bidders had $46m to spend on Tasmanian property but there were only three properties to buy — that is a great environment for vendors.

Mr Coulter described the Nubco sales as “outstanding value for money”.

“Our sales team went through an education process with mainland investors, as Nubco is an unknown brand for them,” he said.

“The three main drivers were: recently acquired for $40m by Coventry Group; Nubco’s sales growth of 18.2 per cent during COVID-19; and the strong economic indicators for Tasmania more broadly.”

Jarrad Bevan, Hobart Mercury

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