The supermarket giants have separately listed two Perth pubs, offering owner-operator upside in areas on the rebound.
In 2011 ALH, 75 per cent owned by Woolworths, bought the 12-venue portfolio of the failed Compass Group, for $86 million.
While it sold the Princes Road Tavern the following year, it has continued operations on all the others until now, listing the Brighton Hotel in Mandurah.
The pub, on 1300sqm, includes a restaurant, rear public bar and courtyard, and upstairs function area, with sweeping views of the adjacent estuary.
Mandurah suffered in the wake of the GFC, large-scale residential subdivisions and developments struggling for occupancy. A decade on, these are established and occupied, and the local economy is beginning to reap the benefits of the population growth.
The Brighton doesn’t offer off-premise liquor sales, and is proximate to another in ALH’s portfolio that hosts a large Dan Murphy’s. After several unsolicited offers ALH determined the Brighton freehold going concern was a candidate for divestment.
Simultaneously but unconnected, Coles’ Spirit Hotels has listed its leasehold interest in popular Perth pub the Victoria Park Hotel.
The two-storey hotel was built in 1927 on 5,330sqm in the heart of what is Victoria Park’s restaurant and bar strip. It contains a sports bar and bistro, restaurant dining, alfresco areas, upstairs accommodation, function and conference facilities, and a drive-thru bottleshop – similarly not doing off-premise trade.
The established and well-maintained business holds another 35 years on the lease, including options, but is not far from Spirit’s Bentley Tavern and its big bottleshop, and similarly superfluous to its needs.
Generating annual income of approximately $3.85 million, the Vic Park could see a sale price circa $2 million.
The Brighton walk-in freehold, likely to benefit from closer management by an owner-operator, could fetch over $3.5 million.
Both pubs have been listed with CBRE Hotels’ Ryan McGinnity and Chloe Mason.
“The Brighton Hotel is a well-established venue generating a substantial revenue,” offers McGinnity.
“The venue is ideally suited to a hands-on operator that will leverage Mandurah’s growing population to further boost turnover and profitability.
“Similarly, the town of Victoria Park is expected to double its population over the next 30 years, which will only add to the profitability of local businesses such as the Victoria Park Hotel.
“The venue’s location on the outskirts of the Perth CBD, proximity to the new Perth Stadium, fantastic management, long lease term and iconic status, all weigh in favour of the business.”
The Brighton Hotel will go to public auction on Thursday 7 December.
The Victoria Park is being sold via Offers to Purchase, closing Wednesday 6 December.
