Another Sydney buyer has bought the very large-format Acacia Ridge Hotel for a top-tier sum from Sydney-based Peter Calligeros and partner Steve Farley.
Billed as one of Queensland’s biggest hotels, the Acacia occupies 18,450 m² with development potential, on busy Beaudesert Road. The south-west region of Brisbane is experiencing unprecedented growth, including the upcoming $600 million Cornerstone Living master plan.
Calligeros and Farley bought the pub just over two years ago for $16 million, and executed a calculated makeover and refresh that has seen it into Queensland’s Top-10. The sale was the State’s first Top-10 divestment in over a decade, brought about due to the impending retirement of Farley, who ran operations.
An as-yet unnamed “Sydney-based pub fund” has added to the succession of record-breaking prices for pubs, forking out close to $26 million for the multi-faceted business and block. The sale process reportedly attracted assorted buyer types from several states.
“It was a significant investment for us, and we wish the new owners well,” offered Calligeros.
“My partner and I are particularly happy with the result, and the way the sale process was run.”
Further to the Hotel’s consistency through its 45 EGMs, it boasts multiple bars, conference facilities, 34 accommodation rooms, a generous car park and large drive-through bottleshop.
Marketing the pub were Ray White’s Asia-Pacific director Andrew Jolliffe together with CBRE Hotels’ Glenn Price, who suggest they had plenty to work with at the revised business.
“The Acacia Ridge Hotel is regarded as one of the most valuable, and therefore sought after hotel properties in Queensland – having recently undergone a strategic renovation that catapulted its State gaming ranking,” said Jolliffe.
As hoteliers steer developments and developers buys hotels around the country, CBRE’s Queensland-based Price didn’t rule out a repeat of the trend with the transaction.
“The critical land size upon which the Acacia Ridge Hotel is located, a proportion of which is supplementary to the current hotel operation needs, provided the purchaser with ancillary mixed use development opportunities.”
The agents report the result was another in the perfect storm flying Australian pub real estate.
“The confluence of the historically low interest rate cycle, ready availability of senior debt, the low Australian dollar driving inbound revenues and the strength of weekly cash receipts at the point of sale, when collectively distilled, render the opportunity to acquire A-grade hospitality property wholly compelling,” concluded Jolliffe.
