The publicly listed Newhaven Hotels has divested another pub from its portfolio, selling the Bateau Bay Hotel to Laundy Hotels for $11 million.
Speaking to PubTIC, Newhaven chairman Fred Kelly said the timing was right.
“The directors of Newhaven believe it is in the interest of all our shareholders to sell at this time and in doing so we wish the Laundys great success with it in the future.”
The sale highlights the desirability of high quality fringe hotels, with the volume of transactions in the past 18 months somewhat diminishing the supply in cities.
“The diminishing A-grade pubs supply has led to significant yield compression, and rather than acquiring a second-grade metropolitan pub, buyers are seeking prime coastal pub assets on bigger sites, in better locations, with larger trading footprints and more scope for upside,” said Sam Handy, JLL’s Vice-President of Investment Sales, who marketed the pub in conjunction with JLL’s National Director of Investment Sales, John Musca.
In early 2014 Newhaven sold the strategically located Buena Vista Hotel in Mosman to Halcyon Group for around $13 million.
“This is the second hotel asset that JLL has translated for Newhaven Hotels, and we would like to thank them for entrusting us with another key sales mandate,” said Musca.
“The sales process attracted significant interest from Sydney-based publicans, and the transaction reinforces the current appetite for NSW coastal pubs and the strength of this market.”