One of Queensland’s Top20 gaming pubs has come to market, as Jaz Mooney’s Middle Head Ventures divests to further big projects in the State’s north.
Meadowbrook is a suburb of Logan City, on the M1 mid-way between Brisbane and the Gold Coast. The area is experiencing residential population growth well above State average.
Meadowbrook Hotel is a well-positioned corner pub proximate to Loganlea station and Logan Hospital. It boasts a family-friendly bistro and alfresco dining area, public bar, drive-through bottleshop, 20 pub-style accommodation rooms, and off-street parking for patrons.
Recent upgrades include a new state-of-the-art gaming room, with 40 EGMs as well as TAB and Keno.
Mooney acquired the Meadowbrook early 2015, and has built its gaming performance to see the pub now amongst the State’s top performers, netting over 100k weekly.
Speaking to PubTIC, Mooney says under different circumstances they would not be selling the pub, but his investment into “three relatively new places” in northern Queensland are beckoning capital.
“What I can say about Meadowbrook is simple – a fantastic cash flow asset that continually performs. We’re essentially cashing out of that, but in another day, another time we would keep it.”
As Queensland continues to see something of a two-speed economy, led by the south-east and languishing in some areas with high dependence on resources, Mooney says he’s picked his target regions and is watching the market.
“All you can do is keep an eye on your LVR, and if business does come off and say it comes off quickly, you’re always on top of your position so nobody can come and get you. Going forward in the next two years people need to be wary of their LVR positions.”
The property is being marketed on behalf of Mooney’s investment vehicle Middle Head Ventures by CBRE Hotels’ agents Paul Fraser and Daniel Dragicevich, tipping its strengths in revenue diversity and cash-flow, and a rare lease.
“The Meadowbrook is situated in a renowned high gaming corridor between Brisbane and the Gold Coast,” says Fraser.
“It is prominently located in Meadowbrook’s commercial centre, with trade underpinned by infrastructure such as Logan Hospital, the Logan campus for Griffith University, Meadowbrook Plaza and a new Woolworths-anchored shopping centre.
“In a time of economic uncertainty cash flow should always be a key determinate with asset selection, and this one truly leads the way. With the current rent at market rates, an exceptionally rare 39-year lease remaining and incredibly strong revenues across all lines of the business, we believe this asset will be extremely bankable, making it highly sought after nationally.”
The Meadowbrook Hotel is being sold via Expressions of Interest, closing Wednesday, 23 August.
