Iconic Hobart CBD Lands Building sold to mainland property investor

Hobart’s iconic Lands Building, which is leased exclusively to the Tasmanian Government for office space, has been sold to Melbourne-based property investor. See how much it went for.

The Lands Building on Macquarie Street in Hobart.

Hobart’s iconic Lands Building, which is leased exclusively to the Tasmanian Government for office space, has been sold to Melbourne-based property investment manager Terraplex for $57.5 million.

The 10-storey Macquarie St property, which was purchased off-market, is currently leased until to March, 2031.

Terraplex director Anthony Wilson said his company considered the landmark property a core investment opportunity, and predicted strong returns from the 11,675m2 building.

“This is represented by the strong income profile with a market rent review to occur on 1 July 2024 where we anticipate the rental rate will significantly increase,” Mr Wilson said.

“Terraplex manages two other funds with Tasmanian office properties and are very familiar with the market dynamics and market rental rates.

“We believe that there is strong potential for market rental growth and that the purchase yield is significantly higher than what would have achieved as recently as 18 months ago.”

The Lands Building was extensively refurbished in 2021, overseen by award-winning local architect Xsquared.

Originally published as Iconic Hobart CBD Lands Building sold to mainland property investor