ALE pots $26m from four pubs

The Morwell hotel and bottle shop sold for $3.06m.

ALE Property Group has sold four pubs with leasebacks.

In Brisbane, the Edinburgh Castle traded for $7.5 million – on par with its recent valuation, reflecting a 4.5 per cent yield.

Also in Kedron, the Kedron Park Hotel achieved $4.5m – or $1.1m more than its recent appraisal.

Pelican Waters Tavern, at Sunshine Coast’s Caloundra, which includes a pier, sold for $10.8m, reflecting a 4.15pc return.

All the buyers are speculated to be Brisbane investors.

In Victoria, the Morwell Hotel or Top Pub earned $3.06m.

That price was $360,000 over the last valuation (story continues below).

Sunshine Coast’s Pelican Waters Tavern sold for $10.8m.

The yield was 4.74pc.

The buyer is understood to be a Queensland investor.

Burgess Rawson’s Billy Holderhead, Pat Kelly, Michael Gilbert and Glen Conridge represented ALE.

All the hotels were offered with leasebacks expiring in 2028 with options to renew for up to 40 years.

The vendor is 85.4pc owned by Endeavour Group/Woolworths, the balance is held by Bruce Mathieson Group.

A spin off to create a $10 billion entity is scheduled in June.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco