Laundy group has capitalised on the market for coastal freehold properties, divesting the big-format Bateau Bay Hotel for circa $13m to a growing local operator.
The Laundy Hotel Group purchased the Bateau Bay Hotel (BBH) in early 2015 for around $11m, almost immediately after buying the idyllic Tea Gardens Hotel, since on-sold to patriarch Arthur Laundy’s nephew Ben Hanson.
These were precursor to the Group’s central coast purchases of the Long Jetty later in 2015, both the Settlers Tavern and Crowne Plaza Terrigal in February 2016, and Swansea Hotel in September 2016, Laundy describing the regional acquisitions as “real value” in light of tightening Sydney yields.
Juggling plans including construction of his first greenfield pub, with onsite craft brewery, Laundy says the BBH was one big operation more than they needed.
“It’s been a solid business, but given we’ve got a few projects on the go at the moment we thought it was the right time to sell. We wish the owners the best of luck with their acquisition.”
Taking the reins are a private north coast hotel group adding to their stable of assets in the area, the $13m purchase price reflecting the strength of the NSW coastal market, equating to a sub-ten per cent cap rate.
Roughly halfway between Sydney and Newcastle, Bateau Bay is the kind of sea-change within reach of a major populace that is attracting many buyers unable to settle in the cities. The BBH’s 27,000sqm block provides for future opportunities in the growing region.
The transaction was performed off-market through CBRE Hotels’ national director Daniel Dragicevich and manager Ben McDonald, who cite the area’s emerging parity with Sydney opportunities.
“The demographic trends, discretionary spending margins and the future economic outlook of areas such as the Central Coast are as positive as those of metropolitan Sydney,” states Dragicevich. “Therefore, there is no shortage of astute publicans continuing to invest in such markets.”
Hinting at further coast sales announcements in coming weeks, CBRE bodes big interest in the sale of Rolly de With’s Premier Hotel in nearby Broadmeadow.
