The freehold of inner-Brisbane landmark pub the Alliance Hotel has come to market through receivers.
Located on the corner of Boundary and Leichhardt Streets in Spring Hill, minutes from the CBD, Central Station and Fortitude Valley, the Alliance is a three-storey Victorian structure built in 1888 on a 478sqm site.
In 2012, having spent several years vacant, it was rescued and revived by well-known publican and former rugby legend Nick Grzegorzewski (aka Gregorski) and his wife Meagan.
Having rejuvenated the business, focusing on the growing market for gastropubs in the Queensland capital, around two years ago they sold the operation to PT Hotels & Property Group P/L. The Gregorski’s entity 320 Nominees held the freehold.
Eager for a new challenge, the couple took on the city’s Port Office Hotel (featured April 2017), going on to garner similar accolades as for their work at the Alliance.
But in early 2019 the Port Office suffered a serious fire, putting major strain on the resources and revenue.
In January 320 Nominees was put into administration with receivers and managers McGrathNicol, which has now listed the Alliance freehold investment.
PT Hotels remain as tenant, leased until April 2022 plus two five-year options, with current annual rent at almost $195k (+GST).
McGrathNicol has appointed HTL Property’s Glenn Price, Brent McCarthy and Andrew Jolliffe, in conjunction with Ray White Commercial’s John Dwyer.
The most recent adjustment to the official cash rate by the RBA has prompted pundits to suggest the rate may go to zero per cent, and the new historic low is driving more players to look for alternatives.
“The freehold investment market for hotels across Australia has been starved of quality assets over the last five years, with minimal transaction events occurring despite an aggressive appetite from potential purchasers due to the low interest rate and low return environment of the wider economic climate,” notes Price.
“This has only served to further strengthen the demand for investment hotels, outlining the succinct differential between borrowing levels and current market yields in the sector.”
McGrathNicol could not be contacted for further insight prior to publication.
Marketing reportedly begins today on the freehold investment of the Alliance Hotel, being sold by way of an Expressions of Interest campaign concluding Wednesday, 4 March.
