Hotel Property Investments has divested its freehold interest in the Coles-tenanted Wickham Hotel in Fortitude Valley on a sharp yield not seen in the state for a decade.
The ASX-listed HPI holds in excess of 40 venues in Queensland and South Australia, majority tenanted by Cole’s liquor and hospitality arm.
HPI engaged JLL Hotels’ Tom Gleeson and JLL Capital Markets’ Seb Turnbull to execute a discreet off-market campaign.
The resultant buyer is a “private Sydney investor” paying $14 million, representing a yield of 5.62 per cent, and reportedly a record for a freehold pub asset in Queensland over the past ten years.
“This was a case of matching a specific buyer’s mandate to successfully complete the transaction discreetly and off-market,” reports Gleeson.
South-east Queensland has become of the country’s hot-spots for commercial real estate, particularly hospitality, and Gleeson says the benefits of the blue-chip investments can’t be denied.
“Combining the fundamentals of the strong covenant with the fact these taverns are often well located and positioned on substantial land holdings ensures assets of this nature are in high demand nationally.”