The Canberra-based O’Donnell Group has sold two more of its collection, in Bungendore, outside of Canberra, and this week the Australian in Cooma, snapped up pre-auction.
Late 2019 the O’Donnell family put to market Goulburn’s Empire Hotel, being part of a collection of six pub assets, some in collaboration with partners.
The Empire re-stapled freehold going concern sold for around $3.6 million to an unnamed first-time buyer.
Since then, the Group’s Royal Hotel at Bungendore was discreetly sold to World Cup winning Wallaby Richard Harry.
Bungendore is a town of around 3,500 people, three hours’ drive south-west of Sydney but only half an hour from Canberra. In recent years it has seen strong development as a tourism centre and popular overnight stay destination for Canberrans.
In late January of this year the O’Donnell’s Australian Hotel at Cooma was put to market, looking to a public auction on 5 March. The asset was being marketed by HTL Property’s Xavier Plunkett, Blake Edwards and Sam Handy.
The full-format pub reported diverse revenue, and holds 15 gaming machines, being almost half the machines in the town of 8,000 people and only three pubs.
It also boasted development potential, with B3 commercial core zoning and 15-metre height approval on a 1,492sqm block.
Cooma is destined for major activity as the massive Snowy 2.0 project ramps up, and above normal blue collar and skilled employment growth for the region.
Agents report portfolio sales can involve an increased level of complexity and intricacy, often and seen here with multiple stakeholders across assets.
But pipping the public process, HTL report the Aussie was sold on the eve of the auction to an unnamed buyer, for slightly above expectations, at around $3.5 million.
“The sale of the Australian Hotel firmly illustrates the effectiveness of the auction process as powerful conductor for generating genuine competition, price optimization and timely divestment,” says Plunkett.
“The NSW regional pub market is currently the beneficiary of a large volume of unmatched metropolitan-based capital seeking regional opportunities underpinned by quality commercial property holdings, and substantial gaming licence value.”
The O’Donnell family still owns the North Nowra Tavern, and the Bayview Hotel at Bateman’s Bay.
