One of the southern Riverina region’s favourite locals has been listed for sale-and-lease-back by the owner-operators, to facilitate their expansion.
The Farmers Arms is in the NSW town of Tocumwal, on the Murray River, around 260 kilometres from Melbourne.
Set on a 1,158sqm site strategically positioned between Tocumwal’s main shopping strip, golf course and bowling club, it offers a front bar, TAB, expansive beer garden and large bistro dining facilities making it renowned as one of the best country pubs for a meal in the region.
The Farmers has also been known as Kellys, and still includes Kellys Bistro, in a nod to the Kelly family who operated it for 60 years.
Since late 2019 it has been owned and operated by Chris, Laura and Shane Stewart. Shane brought culinary experience, trained as a chef at 18 and mastering his skills through 10 years in London restaurants, while Laura began in hospitality from a young age.
The family revived the old pub, utilising Chris’ background in the building industry, bringing a colour change and rebrand to the old building.
Chris and Shane’s grandparents immigrated to Tocumwal from Ukraine in the 70s and they maintain a strong connection to the town. Sale of the pub freehold allows them to pay down debt while furthering opportunities in residential development they have for other property in town.
The pub is now under 30-year lease to the Stewarts, the first five-year term having started in January, with five further five-year options.
Marketing literature is looking at a sale price of around $1.1 million, which represents a better than seven per cent yield.
The Stewarts have engaged CBRE Hotel’s Mathew George to market the property.
“It’s a solid trading little pub,” he says. “The opportunity is underpinned by the longstanding goodwill and successful business that’s been operated from the Farmers Arms for decades, looking after locals and visitors.”
Tocumwal is on the Newell Highway, and a renowned destination for tourists and holidaymakers, drawn to its local attributes, including 23 beaches within five minutes of town. It’s the kind of town seeing growing appeal in the wake of the pandemic migration.
“With more local and domestic tourism than ever before, regions such as Tocumwal along the Murray continue to attract high visitation and investment,” added George.
The Farmers Arms Hotel freehold interest is for sale via Expressions of Interest, closing Thursday, 24 June.
