Full steam ahead for Margate Train: unique retail precinct hits the market

Coming to a halt on the outskirts of Margate, a country town 18 kilometres south of Hobart, the train found a new lease of life when its rear carriages were converted into small shops and restaurants.

The train that had once transported people back and forth across the island state became a destination in its own right.

For more than 40 years, the Margate Train complex has attracted history buffs, train geeks tourists and local residents. “I’ve got four kids, and we’ve all been there,” said Knight Frank listing agent Trevor Fox. “It’s hugely popular.”

The iconic Tasmanian retail precinct has just hit the market, pitched as a mixed-use retail investment with tourism upside.

Fully leased, the eclectic mix of 12 tenancies includes the renown Pancake Train parlour, a barber, lolly shop, bric-a-brac store and a clothing boutique.

“There are never any vacancies,” Fox said. “Its occupancy has been exceptionally consistent for the past 10 years.”

And the property is much more than just a retail investment, he said. “It is a much loved tourist attraction, a community hub, a playground for children and a rewarding lifestyle experience for the proud owners.”

In addition to the old train carriages, serviced by a pathway reminiscent of a train platform, the site also features a bank of 13 shipping containers and several large warehouse showrooms leased to Carpet Junction, Beds’R’Us and MT Traders.

Fox sold Margate Train 10 years ago to the current vendors – a pair of investors, one of whom lived locally, while the other was based in Western Australia.

This time around, the agent is expecting to field interest from local, national and international investors. Since the listing went live on Friday, it has already generated enquiry from Singapore. “Regarding price, whilst it is early in the campaign the market is talking upwards of $4.5 million showing a circa 7.5 per cent yield,” Fox said.