Full steam ahead for Margate Train: unique retail precinct hits the market
The famed Margate Train with its converted retail precinct is for sale. Photo: Jon Jarvela

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

The Margate Train might have stopped chugging in the late ’70s but it never lost its lustre.

The steam train, formerly known as the Tasman Limited, was built in England in 1950 and carried passengers between Hobart and Launceston until its final rail journey in 1978.

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.

299b6b9f8d88f8cd4190c32f042353b31fb71e15_xafif2
Tenants of The Margate Train include the Pancake Train parlour, a barber, lolly shop, bric-a-brac store and clothing boutique. Photo: Jon Jarvela

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.

The Margate Train – 1567 Channel Highway is for sale via expressions of interest, which close on March 23.