Hobart waterfront pub with rare rooftop offering draws global investor attention
A tightly held pub in the heart of Hobart’s historic Salamanca precinct is already attracting international investor interest just days into its sales campaign, highlighting growing confidence in Tasmania’s food and beverage sector.
The Telegraph Hotel stands as one of the most recognisable pubs along Hobart’s waterfront, drawing in punters seeking after-work drinks in a relaxed setting with rooftop access to boot.
The listing has drawn enquiries from local, national and offshore buyers within days of hitting the market, according to Hayden Peck, director at Ray White Commercial Tasmania.
“We’ve had very strong interest so far,” Peck said. “This is only day four of the campaign and we’ve already received enquiries from local, national and international investors – including one out of New York this morning.”
Positioned just a stone’s throw from Salamanca Place and only a few hundred metres from the approved Macquarie Point Stadium site, the multilevel food and beverage venue is expected to benefit from increased foot traffic tied to Hobart’s evolving CBD.
Peck said the stadium’s green light had already begun to bolster confidence among hospitality operators and investors seeking exposure to Hobart’s tightly held waterfront precinct.
“I think the stadium being green lit has given a lot of confidence to food and beverage operations,” he said. “With multiple levels of food and beverage offering and a rooftop bar, this asset will be very well placed to capitalise on increased activity following major events.”
The property is leased to one of Australia’s largest non-gaming food and beverage operators on a 10-year lease with a further 10-year option, providing investors with a secure, long-term income stream. The lease structure, which includes a net annual income of $500,000 plus GST, makes the tenant responsible for the majority of outgoings, leaving the landlord primarily accountable for the building’s structural elements.
The hotel underwent a comprehensive renovation less than five years ago, with more than $5 million invested in the upgrade.
“There’s nothing to do from a capital expenditure perspective for quite some time, which is a major advantage in the current construction environment,” explained Peck, referring to the escalating development costs across the state.
“Since this was renovated, building costs have skyrocketed, which effectively puts a moat around the property,” Peck said. “Someone looking to build a competing asset nearby would really struggle to make it stack up financially.”
The hotel’s rooftop bar remains a rare offering within the tightly controlled Salamanca heritage precinct and further enhances its point of difference in the market.
Heritage pubs of this calibre seldom come to market in Hobart, Peck added, noting that opportunities to acquire established waterfront venues are limited by the city’s relatively small commercial footprint compared to mainland capitals.
“They don’t transact very often,” he said. “It’s a small market down here compared to somewhere like Melbourne, so offerings like this are genuinely rare.”
