Tasmanian-based super fund Spirit Super has acquired the Parliament Square mixed-use development in Hobart for around $330 million from the Schwartz family, in the state’s biggest commercial property transaction.
Overlooking Hobart’s Sullivan’s Cove and Franklin Wharf and directly connected to the Parliament of Tasmania, the 7700sq m site covers most of a city block in central Hobart and includes two office buildings, a five-star hotel and retail.
The Salamanca Place project was developed over the past seven years by Trawalla Group, the family office of Melbourne power players Carol and Alan Schwartz family, in conjunction with Citta Property Group and Qualitas.
The 17,300sq m office component is linked to Parliament House and leased to the state government until late 2037. Included in the sale is the Marriott Group-managed 152-room Tasman Hotel, which is due to open this month.
The acquisition is the first for Spirit Super since its creation this year through the merger of MTAA Super and Tasplan – creating an entity with $23 billion funds under management and 314,000 members.
“Parliament Square is underpinned by strong long-term leases and will deliver enduring benefits to members right here in our own backyard and all across Australia,” said Ross Barry, Spirit Super’s chief investment officer.
“It’s great to be investing member funds back into their own community and to see the creation of over 100 jobs.”
CBRE’s Mark Granter, Kiran Pillai and Michael Simpson brokered the sale of the project on behalf of the Trawalla Group. Law firm Arnold Bloch Leibler acted on behalf of Trawalla Group, while JGS Property and Gilbert & Tobin represented Spirit Super.
“The quality of this asset, the government tenancy covenant – which provides a WALE of 16 years – and the inclusion of one of Australia’s best new five-star hotels attracted widespread interest from some of the largest local and international players in the market.
“Despite lockdown restrictions, we were able to work across geographies and asset classes to finalise the largest real estate transaction in Tasmania’s history,” CBRE’s Mr Granter said.