A private family has listed two blue-chip ALH-tenanted pubs in Adelaide, as investor interest in hospitality assets shows little sign of slowing.
The Highbury Hotel, and Village Tavern in Golden Grove, count a combined landholding of 19,818sqm, and both hold favourable ‘Activity Centre’ zoning.
Village Tavern is situated in the heart of Golden Grove’s retail and commercial precinct, adjacent to high traffic destinations such as ‘The Grove’ shopping centre, ranging a Woolworths, ALDI and Big W.
The pub has enjoyed recent refurbishments throughout, tweaking a state-of-the-art outdoor live entertainment zone, and dedicated gaming room with 40 EGMs.
Highbury Hotel is a multi-faceted hotel complex with multiple trading zones, including gaming operation also holding 40 machines, and extensive car parking.
Both pubs include large-format Dan Murphy’s retail liquor outlets on the title.
Both assets are offered on long-term, triple net leases to ALH Group – subsidiary of ASX-listed Endeavour Group and Australia’s largest hotel and retail operators, holding around 350 licensed venues and more than 250 Dan Murphy’s sites.
They generate a combined net annual income of $3.005 million, and the leases are geared to annual increases via CPI, to a minimum of three and maximum of five per cent.
The freehold properties are owned by one family, with additional partners, who have engaged JLL’s Will Connolly, John Musca, Ben Parkinson and Stuart Taylor for a sales campaign, said to represent “two of the most significantly underpinned opportunities to come to market” in 2022.
“Demand for long WALE assets from both a retail and hotel perspective continues to hold firm, with the traditional retail investor now clearly identifying the hotel investment market as an avenue to secure premier assets,” reports Connolly.
“There is an acute awareness now that these assets also provide strong tenant covenants, landlord-favourable leases, and significant underlying land value.”
Connolly suggests the combination of ALH and pub investments is the “perfect marriage between two of the nation’s strongest markets”.
The freeholds of the Highbury Hotel and Village Tavern are available individually or in-one-line via Expressions of Interest, closing Thursday, 10 November.
