Cape Bouvard Investments has secured the big Coles-tenanted Waterloo Hotel and block in the downtown heart of Brisbane for $47 million.
The historic Waterloo Hotel occupies 991sqm on the very prominent corner of Commercial Road and Ann St in Newstead, surrounded by A-grade commercial and leisure businesses.
The Hotel is part of the Waterloo Junction complex, which includes a Coles First Choice Liquor Barn, two retail tenancies and high-end offices, totalling 4,634sqm of lettable space over five levels. The complex is fully tenanted, with average WALE of 5.41 years.
The Waterloo is leased to Coles’ Spirit Hotels until 2030, with two further 10-year options. It has seen substantial capex in sympathy with its Art-Deco styling.
Cape Bouvard Investments Pty Ltd (CBI) began in 1986 and has become one of Australia’s largest privately-owned businesses, boasting assets and investments in multiple fields.
CBI already holds more than $600m in real estate commitments, including apartment blocks, office towers, over 300Ha of “future subdivisible” and commercial land, and 16,000sqm of retail space.
It also invests heavily in technology, citing projects including a new ‘Vehicle Energy Storage System’ and household sustainable energy storage system, wind machines and drive systems.
Following its pivoting from a planned wind farm project in Clifton Beach, $300m was allocated to further the company’s property portfolio.
The Waterloo Junction freehold represents Perth-based CBI’s entry into Queensland. The $47m price tag represents a 7.77 per cent yield for the company.
The asset was marketed for the private investor vendor by JLL Hotels’ Tom Gleeson, in conjunction with associate director – capital markets, Luke Billiau. The EOI process reportedly generated widespread interest from domestic and offshore buyers.
“The combination of the landmark nature of the asset with the tenant profile, prime inner-city location, quality of improvements and the fact the property is currently 100 per cent occupied assured the campaign generated enormous levels of interest, with over 130 enquiries,” Gleeson told PubTIC.
