The Brisbane Valley Tavern and Centre have come to market, offering five tenancies and underlying gaming value in one of south-east Queensland’s thriving regions.
The Brisbane Valley Centre in Fernvale is a 3,174sqm block incorporating the Tavern and Motel, as well as retail tenants including a Pizza Hut, netting annual rental income close to $300k. The title includes the seven gaming machine entitlements, valued at just over $1.1m.
Fernvale is a rapidly growing rural township around an hour’s drive west of Brisbane. The area is one of the region’s largest agriculture hubs and benefitting from growth from Ipswich, to its south. With subdivisions and over 1,000 residential lots to be developed, the population is expected to double by 2036.
The site’s short-stay accommodation, comprising eight apartments, has been approved for Strata titling, but this has not been executed, optimising prospects for an incoming owner.
The vendors, Carbon Investments, have determined now is a good time to divest, given Queensland’s hot south-east market. Price expectation starts at $3.5m, representing a strong seven to eight per cent yield on the passive investment.
The company has appointed CBRE Hotels’ agent Paul Fraser and CBRE Retail Investment’s Millan Narsey to manage the campaign, who say it is a “tidy parcel” with all the revenue streams and nothing to spend.
“It’s a very nice-looking pub,” notes Fraser. “It has been well run, and the operator of the tavern operates the motel as well.
“In an environment where there has been long, sustained record low interest rates it is unusual to come across assets that have multiple income streams with proven long track records, whilst also having a large underlying value when you combine land property and gaming entitlements.”
The Brisbane Valley Centre is for sale via an Expressions of Interest campaign, closing Thursday, 21 September.
