In a further display of market diversity, Laundy Group has purchased an idyllic and “real value” hotel on the NSW Central Coast.
Growing its existing regional portfolio, which already includes pubs in Wagga Wagga, Dubbo, Orange and most recently Long Jetty, the Laundys have purchased the only hotel in Tea Gardens – the Tea Gardens Hotel.
Vendors were Lee & Rob Anderson, who have owned the property for an amazing 69 years.
The iconic pub, on a generous 3,646 m² site adjacent to the ferry wharf and overlooking the Myall River, is a classic family institution, with two children’s play area, indoor and outdoor beer gardens, multiple bars and a dining room, as well as gaming and 21 motel suites.
Arthur Laundy reports that while the group is still actively in the market for large format metropolitan hotels, returns through coastal and regional assets “represent real value”.
Manenti Quinlan managed the campaign, and Gerry Quinlan told PubTIC the yield comparison is pretty plain to see.
“City yields are now in the region of 8 – 9.5 per cent, while regional yields are sitting at 13 – 15 per cent.
“It makes the regional market a compelling investment.”
Beyond its facilities and position, MQ cite the hotel’s upside as a hub to the area’s burgeoning potential for tourism, with plenty of local development and being only two and a half hours drive from Sydney. The local population itself has experienced rapid growth, set to continue with more than 1,000 nearby lots approved for pending development.
MQ’s John Manenti, who brokered the sale, said it is a typical example of the Laundy Group’s knack for sourcing hotel assets with defined upside.