Australian Venue Co has teamed up with landlord HPI to offer the freehold going concern of Townsville stalwart the Hotel Allen.
Built in 1946, Hotel Allen occupies a 6,186sqm corner site with three street frontages, proximate to a host of Townsville’s top attractions, such as beachfront promenade The Strand, and the heritage-listed Queens Gardens.
Located in the coastal suburb of North Ward, the two-storey pub comprises a sports bar and beer garden, bistro and alfresco dining area, gaming room with 40 machines and three DOSAs, as well as fifty-three motel rooms, a swimming pool and a drive-through bottleshop, rounding out a strong base of income streams.
It also holds future development upside (STCA), via the property’s five-storey height limit, and easy connectivity to the Bruce Highway.
Found around 350 kilometres south of Cairns, or 1,300 north of Brisbane, Townsville is the largest city in northern Australia.
It is dubbed the ‘Capital of the North’ with a population of 190k residents, predicted to reach 300k by 2028 at the current rate of growth, bringing infrastructure such as the new Queensland Country Bank Stadium and the $232 million Port of Townsville Channel Upgrade.
The city’s economy is broad, encompassing mining, mineral processing, agriculture, manufacturing, tourism and defence, and Townsville enjoys a reputation as a major tourism gateway to the Great Barrier Reef and Queensland outback.
An attractive combination of the large-format operation and its development potential will likely see interest from well-established operators. HPI lists the book value of the undeveloped freehold as $15.5 million, representing a 7.00 per cent cap rate on its investment.
The asset is for sale through Savills Australia’s Tony Bargwanna, Leon Alaban and Taylor Morris, as demand for quality regional and coastal investments remains strong.
“Hotel Allen has been owned by several high-profile Queensland hotel families over the years, and been a very successful pub,” says Alaban.
“Its prominent position makes it a centrepiece of the town.”
The freehold going concern of Hotel Allen is being sold through an Expressions of Interest campaign, closing Friday, 24 June.
