A private investor has listed blue-chip investment the Crown Inn, on a long lease to Australia’s largest publican, ALH Group.
Located in the Adelaide suburb of Old Reynella, the Crown occupies a commanding 6,550sqm site in the heart of the precinct’s retail centre, within 20 kilometres of the Adelaide CBD.
It sports extensive facilities, including sports bar with TAB facilities, a large family-friendly bistro with children’s play area, gaming lounge with 33 EGMs, drive-through bottleshop and extensive on-site parking.
The pub is under an initial 10-year lease to ALH, with four further 10-year options.
The freehold asset currently generates net annual income of $868k, set to increase annually at CPI.
ALH bought the lease in 2019 from GM Hotels, which listed six of its hotels in March of that year. ALH is the pubs arm of ASX-listed Endeavour Group, operating over 350 venues around the country.
Following a year of record high transactions and aggressive interest in Australia’s highly competitive hospitality investment market, as the South Australian economy experiences the strongest housing price growth in the nation, year-to-date, the Crown is a sought-after investment opportunity expected to generate “a flurry of interest” from various buyer classes.
It is being marketed by JLL Hotel’s Will Connolly, John Musca, Roger Klem and Stuart Taylor.
“There is a level of momentum that is palpable within this profile of investment class that has remained consistent over the past 18 months,” notes Connolly.
The Freehold of the Crown Inn in Old Reynella is available via Expressions of Interest, closing Thursday, 27 October.
