CBRE as exclusive agent officially announced Parliament Square Hobart sold and settled to Spirit Super for $338,000,000. CBREs Michael Simpson, Scott Callow, Mark Coster, Mark Granter, Kiran Pillai and Stuart McCann handled the exclusive appointment.

The sale is the largest real estate deal ever concluded in the state of Tasmania.

Parliament Square, developed by Citta Property Group, features a mixed-use asset comprising office, hotel, retail and car parking components which was completed in late 2021. The 16,300sqm* FJMT designed office component and associated car bays is leased to the Tasmanian State Government on multiple leases until 2037 and is one of the finest architectural examples in the Hobart CBD. The Hotel component remained under construction for the entirety of the sales campaign and was completed and subsequently opened in December 2021. Designed by Joseph Pang Design, the 152 room hotel blends a series of old historic buildings with a new, modern structure and is the first ‘Luxury Collection’ hotel to be opened in Australia by the Marriott Group. The hotel was sold subject to a 15 year management agreement. The sale also included some 630sqm* of retail tenancies which are located within a central Plaza on site.

Despite the campaign being undertaken at the height of the Covid-19 pandemic with the majority of states in lockdown, the campaign program recorded exceptionally strong interest from domestic and international purchasers with four parties invited to participate in a second and final round of bidding. Only the smallest of margins separated the top three bidders which reinforces the strength of interest for high quality, long leased assets.

CBRE’s Mark Granter commented during the marketing campaign, “The quality of this asset and the government tenancy covenant, providing a WALE of 16 years, will attract widespread interest from some of the largest local and international players in the market. Apart from the high quality improvements, the project sits on a very large site of some 7,700 sqm”

CBRE Hotels’ Michael Simpson added at the time that interest in the Tasman hotel was underpinned by the strength of the Tasmanian tourism market, with the Tasman Hotel positioned to become one of the best hotels in Australia.

CBREs Michael Simpson, Scott Callow, Mark Coster, Mark Granter, Kiran Pillai and Stuart McCann handled the exclusive appointment.

To request a sales analysis please contact the selling agents CBRE via the below contact details.

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