24-28 Main Road Moonah is a significant dual tenanted retail site on one of Hobart's most frequented thoroughfares and incorporates dual street frontage. The Main Road is considered equivalent to Hobart’s ‘High Street’, representing the densest commercial strip in Greater Hobart. The strip has significant traffic volumes, and has just under 25 percent of all traffic lights in Southern Tasmania. The premises provides a gross lettable area of approx. 3878sqm, and comes with a healthy amount of off street parking (major strength in this area) Only 6km from the Hobart CBD, this large land holding, combined with being in a designated high growth corridor, is likely to underpin significant capital growth in the asset (even without the rent reversion and rezoning upside). The site is leased to the main anchor tenant Ashleigh Furniture (national tenant), who occupy the main road frontage. Asheligh have been on site over 15 years. The rear frontage is leased to Hunts Heating, who have operated their showroom since 2018. The combined net return is $ $442,513* - 6.05% (assumes property management of 3%), with the tenants responsible for 100% of outgoings. This asset has a serious amount of capital growth upside, due 1) recoverability of property management fees, 2) major rental upside, with the head tenants rent well below market rent, and 3) development upside, with the site recently approved for development of apartments (above commercial). 1) The lease shows that property management is recoverable from the anchor tenant, this immediate potential upside can increase the net yield to 6.23%. 2) The asset appears to be significantly under rented, versus a sample of similar retail properties in the area. This provides a huge upside opportunity at the anchor tenants market review in 6 years time. Compared to recent market review on a similar asset nearby, the asset head tenant lettable area is under rented by a whopping $200/m2 (upside of $10,800,000 based on this upside alone, in today’s dollars). See ‘Rental growth upside potential’ page for more information. Further supporting the uplift strategy, is the fact the main road strip is very tightly held, and under strong demand from both local and national retailers. This would place the purchaser in a strong position to negotiate at the anchor tenant lease review in 2030. 3) Main Road Moonah is part of a designated high growth corridor within Hobart, which provides some exciting development opportunities for this site. Excitingly, the asset has recently had a development overlay added, allowing apartments. The apartment overlay has been enacted within the planning scheme in recent weeks.