A Melbourne syndicate has sold its Gracemere Tavern in central Queensland to an expanding NSW-based operator.
Stephen Beaumont’s Cook Beaumont and Partners listed the under-management freehold going concern hotel in Rockhampton in the first half of 2022, looking to streamline operations and seeing it as an outlier in the portfolio.
Established 1885, set on 3,970sqm opposite the Woolworths-anchored Gracemere Shopping World shopping centre, the venue offers patrons a public bar, TAB and gaming room with 33 machines, bistro, large beer garden, kids’ play area, and busy drive-through bottleshop.
A major regional city, the Rockhampton region counts some 13,500 local residents and is commonly referred to as the Beef Capital of Australia, courtesy of its more than 3 million head of cattle – the highest head number in the country – and the Central Queensland Livestock Exchange (former Gracemere Saleyards), being the largest cattle sales facility in the Southern Hemisphere.
Beyond management upside, the Tavern held approval to increase its gaming machine count to 37 machines. It was speculated to fetch sale price circa $20 million.
An unnamed, significant “multi-state operator” is said to have now taken the deeds in what represents a price record for a Queensland regional asset post-COVID.
“HTL Property continues to leverage our relationships with interstate publicans, who recognise compelling value in the Queensland market and who are prepared to look wider than just the south-east region,” explained HTL’s Brent McCarthy.
In spite of the challenges presented by inflation, agents say there is still unsatisfied equity looking to invest in the sector, with a new wave of corporate operators, private equity groups, and family offices seeking cross-border operational exposure, further demonstrating pubs as one of the most resilient of commercial property markets.
“Assets with strong revenue generation models and underwritten property fundamentals remain in high demand, with a particular interest in assets that exceed $1.5 million in annual net profit,” adds HTL’s Glenn Price, who co-managed the sale.
