MenCarthy has boosted its growing presence in south-east Queensland with purchase of the impressive Southern Hotel in Toowoomba from long-time custodians the Bowly family.
A sweetheart of the Darling Downs, the pub is located roughly four kilometres south of the Toowoomba CBD in one of the city’s most established residential and commercial precincts, on a substantial 9,584sqm corner of arterial Ruthven Street in Kearneys Spring.
Over almost four decades of stewardship the Bowlys, who have owned and operated it since 1986, have modernised, diversified and evolved the asset through continual investment and refurbishment to provide a comprehensive range of facilities.
There is the popular Bar 839 sports bar, Fire & Ice restaurant, Café Inferno, The Terrace beer garden, The Lookout function space, a gaming room with 45 machines, extensive children’s play facilities, and a drive-through bottleshop. The business also holds three more detached Bottlemart stores, located across Toowoomba.
A Top30 gamer, it’s rumoured MenCarthy paid around $40 million for the prime asset.
MenCarthy is Tom Menogue and pub broker turned operator Brent McCarthy. The major purchase further strengthens their growing presence in Queensland hospitality, particularly within one of its most significant regional economic centres.
Toowoomba counts population of more than 184k people and is undergoing more than $20 billion in development investment as its prominence grows as a host city for events of the Brisbane Olympic Games in 2032.
MenCarthy cites a long-term strategy of buying in growth regions and is earning a reputation for successful operations in the region, already holding the nearby Fiveways, Pittsworth and Downs hotels.
“It’s a great asset and the family were great to deal with,” McCarthy says.
Having now four pubs in the area provides the group with significant immediate synergies and opportunities beyond being a fresh set of eyes on the business.
“The market is ok and trade holding up,” he continues.
“The Southern’s in good nick. We’ll get behind the wheel for 12 months or so and work out what it needs.
“Accommodation is going very well in Toowoomba and it could benefit from 40-50 rooms, with such a big site.”
While MenCarthy says the buy wasn’t on the radar, they were lucky enough to benefit when the opportunity arose and took possession 8 October.
“We have been very pleased with the staff that have come on board, particularly senior management,” adds McCarthy.
“This will be the centrepiece of our Darling Downs assets.”
The landmark result is said to be the largest freehold going concern regional pub sale in Queensland, courtesy of a targeted off-market campaign by Savills Hotels’ Kath Brassington and Leon Alaban.
Agents report premium assets remain tightly held and rarely traded, even in regional precincts, yet despite “broader economic headwinds” buyers were especially attracted to the Southern’s diversified revenues, landholding and reputation.
“The Southern Hotel is widely regarded as one of regional Queensland’s premier hospitality assets, and the strength of interest received throughout the campaign reinforces the confidence the market continues to have in the long-term fundamentals of the pub sector,” concluded Alaban.
