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Cambridge Aerodrome gives buyer an opportunity to expand on aviation legacy

June 25, 2024

Raine & Horne Commercial Hobart is thrilled to announce the sale of Cambridge Aerodrome[i], one of Tasmania’s busiest airports by traffic movements that is expected to reach an eight-figure mark. This significant transaction comprising over 45 hectares marks a pivotal moment for aviation and industrial development in Southern Tasmania.

The aerodrome’s listing agent, Mr Leslie Simpson, Commercial Sales & Leasing Agent of Raine & Horne Commercial Hobart, expressed his enthusiasm for the sale, stating, “We are privileged to facilitate the sale of Cambridge Aerodrome, a cornerstone of Tasmania’s aviation history.

“This sale presents an exceptional opportunity for further aviation development or industrial expansion in one of Tasmania’s fastest-growing precincts.”

The aerodrome’s prime location within the burgeoning Cambridge industrial-commercial precinct offers unmatched potential. Key features include:

  • Frontage to Kennedy Drive, the main thoroughfare in the booming Cambridge area.
  • Proximity to the Hobart CBD (15 minutes) and Hobart International Airport (5 minutes).
  • Diverse zoning, including light industrial, utilities, and open space, with potential for rezoning subject to approvals.
  • Short-term lease-back providing holding income, with additional adjoining land available for further aviation infrastructure development.

The property is on the northern side of Kennedy Drive, and nearby notable occupiers include Helicopter Resources, Hydro Tasmania, Veolia, and “The Cambridge Centre”, that is home to Harvey Norman and Nick Scali.

A storied past and promising future for Cambridge Aerodrome

The Cambridge Aerodrome holds a rich history. Purchased by the Australian Government in 1934, it served as Hobart’s main airport until the opening of the nearby Hobart International Airport in 1956.

Since 1992, the Wells family, owners of Par Avion and Airlines of Tasmania, the aerodrome's main tenants, has privately owned and operated Cambridge Aerodrome. This key hub supports general aviation, including emergency services, scenic flights, and pilot training. Par Avion and Airlines of Tasmania occupy most of the site, providing chartered flights, scenic wilderness tours, and pilot training.

Today, the aerodrome boasts two runways with lighting, above ground aviation fuel facilities, and substantial steel-framed, metal-clad warehouse-style buildings used as hangars for light aircraft and offices. It also offers taxiways, aircraft parking areas, extensive vehicle parking, and an old Aero Club building.

Mr Simpson confirmed, "We already have aviation businesses interested in building on the Wells family's legacy, as well as developers considering the re-zoning potential of the utilities portion of the site that is approximately 31.5 hectares. In addition, there is already light industrial land parcels (around 3.4 hectares) with significant underlying value.

“It’s a big piece of potential industrial land within arguably Tasmania’s highest growth industrial-commercial precinct featuring 196 metres of frontage to busy Kennedy Drive.”

To illustrate the growing popularity of the Cambridge precinct, industrial land values have surged significantly. In late 2020, prices ranged from $110 per square metre to $135 per square metre according to Raine & Horne Commercial Hobart. Recent sales, however, have seen values climb to as high as $470 per square metre to $500 per square metre, exclusive of GST.

Mr Simpson added, “Furthermore, demand continues to be strong while supply remains static, indicating potential for further growth in the short to medium term.

“While we anticipate a sale price reaching around an eight-figure mark, the final value may vary based on the buyer’s plans for the property. Its value as a vacant industrial parcel may exceed that of maintaining it for aviation purposes. We anticipate different valuations from aviation interests and competing developers.”

Adjoining land for sale could support further aviation development

Adding to the development potential of the airport, Raine & Horne Commercial Hobart currently offers three light industrial allotments adjacent to the western boundary of the aerodrome. These lots provide opportunities for further aviation development or relocation of existing infrastructure. The available lots are 33 Cherokee Drive (2,859 square metres for $1.35 million, 35 Cherokee Drive (2,911 square metres) for $1.37 million, and 37 Cherokee Drive (3,077 square metres) for $1.45 million.

Mr Simpson said these three properties were part of the original 1934 acquisition and could be purchased by businesses seeking to relocate to the Cambridge Aerodrome precinct or for additional aviation infrastructure.

Cambridge Aerodrome at 115 Kennedy Drive, Cambridge, is offered for freehold sale by Expressions of Interest closing at 2.00 pm on Tuesday, 9 July 2024.

For confidential enquiries or to request an Information Memorandum, don’t hesitate to contact Leslie Simpson, Commercial Sales & Leasing Agent, Raine & Horne Commercial Hobart on 0419 339 826.