The Argyle Hotel is for sale in the Southern Highlands, offering a secure investment in a precinct projected to grow significantly in the coming years.
Built 1868, the former Commercial Hotel occupies an expansive 1,790sqm high-profile site on the Illawarra Highway, in the town centre of Moss Vale. It is girded by major retailers, such as Coles, ALDI, Harvey Norman, BWS and McDonalds.
On offer is the freehold component of the Georgian-styled pub, which includes ownership of the liquor licence and 15 gaming machines, currently valued at more than $5 million in-situ.
Operating the Argyle in recent years is experienced hotelier Adrian Guest, who also owns the New Ivanhoe at Blackheath and Empire at Goulburn, and also leases the Royal Hotel at Bowral.
The triple net lease has a combined 15 years remaining, paying annual rent of around $506K (+gst), with three per cent fixed annual increases.
Established in 1861, Moss Vale is home to nearly 9K residents of Wingecarribee Shire, around 120 kilometres south of the Sydney CBD. The town is forecast to welcome an additional 5K new residents upon completion of the nearby Ashbourne Masterplanned community, bringing approximately 1,500 new dwellings.
The only other gaming pub in town is the Malouf family’s Moss Vale Hotel.
Seller of the freehold is William Dou, who has owned it for around a decade and has enlisted HTL Property’s Blake Edwards and Sam Handy to market the asset.
Recent significant regional NSW freehold investment hotels have achieved yields of 4.1 per cent (Amaroo Tavern in Dubbo) and 4.09 per cent (New Albury Hotel, Albury). Sale of the Argyle is expected to find interest with hospitality investors seeking a secure income courtesy of a long lease.
“The Argyle Hotel is a highly regarded suburban hotel,” reports Edwards.
“The stability offered by the businesses trading fundamentals and experience of the tenant, in combination with a protected local business model, makes this a compelling investment proposition.”
Expression of Interest on the freehold of the Argyle Hotel close Thursday, 20 March.
