Pub sales continue unabated across the east coast, and if freehold going concerns and operations aren’t transacting investors are finding the deeds on investment freeholds.
Listed funds manager Charter Hall has secured ALH’s Imperial Hotel for $6.618 million, representing a 4.88 per cent yield.
Located in Beenleigh, 35 kilometres south of Brisbane, the two-level Imperial holds a 1,834sqm site, featuring main bar, sports and Keno bar, gaming room and drive-through BWS bottleshop.
It is on a long-term 20-year net lease to Australian Leisure & Hospitality (ALH), with options to 2082.
“The sale illustrated the massive ongoing demand for single tenant investments leased to blue-chip, listed operators such as ALH Group,” offered Savills Hotels’ Leon Alaban, who brokered the off-market deal with colleague Michael Harcourt.
This follows news of the sale of the freehold of the Loaded Dog Hotel, in Tarago, NSW.
Established 1848, the Dog features public bar, bistro, gaming room with five machines, beer garden and 11 accommodation rooms. It resides on a 8,094sqm lot with surplus land, within the township of Tarago, which lies between the regional centres of Bungendore and Goulburn.
It sold to “a Sydney-based investor” prior to the closing of the EOI campaign, achieving a yield of 6.64 per cent via annual passive income of $166k.
Vendors Mark and Nicole Ryan owned and operated the Dog for sixteen years, before leasing the business to their long-time managers Tim and Alannah Long.
“We have a lot of wonderful memories and moments regarding the hotel, and whilst the sale is tinged with a small degree of sadness, we’re comforted by the fact that the new landlords are very keen to work closely with our tenants Tim and Alannah in order to build upon the hotel’s success and standing within the local community,” said Mark Ryan.
“Interest was undoubtedly driven by the property representing one of the most financially efficient entry points an investor can enjoy,” suggested HTL Property’s Blake Edwards, who marketed the property with colleague Sam Handy.
Continuing the momentum, freehold of the Star Hotel of Macksville has come to market.
Just south of Nambucca Heads, Macksville is known as the halfway point when driving between Sydney and Brisbane. The Star sits on a 1,300sqm block of land, providing public bar, bistro, several riverside deck areas, gaming room with 10 EGMs and 10 accommodation rooms.
The Simpson family are selling the property, after holding it for four years. It is under lease to Albert Nascinento for another 20 years, drawing annual rental income of $273k plus outgoings, with annual increases of three per cent or CPI, whichever is greater.
The freehold is expected to fetch sale price of $6 million.
It is being marketed by HTL Property’s Blake Edwards and Xavier Plunkett.
“In addition to investors, I think the asset will also be particularly attractive to hotel operators looking to secure gaming entitlements for future utilization as product scarcity becomes increasingly apparent,” says Edwards.
The Star Hotel will be sold via Expressions of Interest, closing Thursday, 28 October.
