Charter Hall picks up Imperial Hotel
Charter Hall has spent $6.618 million for the Imperial Hotel at Beenleigh, about 35 kilometres south east of Brisbane.
The off-market deal for 70 George Street is being struck at 4.88 per cent yield.
On 1834 square metres, the property includes a drive-through BWS bottle shop and two level hotel with gaming.
It was offered with a 20 year lease to Endeavour subsidiary, ALH Group – with which Charter Hall has a relationship.
“The sale illustrated the massive ongoing demand for single tenanted investments leased to blue-chip, listed operators,” Savills Hotels’ Leon Alaban said.
Colleague Michael Harcourt added the combination of a long lease and quality covenant attracted institutional investors.
The sale comes 18 months since ALH purchased two regional Queensland pubs – the Queens Beach Motor Inn, at Bowen, 200 kilometres from Townsville, and Goondiwindi’s Victoria Hotel.
Also last year, Charter Hall outlaid $19.7m for Darwin’s Parap Tavern, which is leased to ALH.
In July, the manager, in partnership with Endeavour, acquired the Terrey Hills Tavern, north of Sydney, for $39.8m – $26.3m of which was for the freehold.
Both these assets are now held in Charter Hall’s Long Wale REIT (story continues below).
Loaded Dog sells for $2.5m
Meanwhile at Tarago, in New South Wales’ Southern Tablelands, a Sydney investor is paying $2.5m for the Loaded Dog Hotel freehold.
The deal, struck by HTL Property’s Blake Edwards and Sam Handy, reflects a 6.64pc return.
The asset includes a bistro and gaming. There are also 11 guest suites.
“Being the only pub in town, [Loaded Dog Hotel] also enjoys a strong following within the local community,” the agents said.
“In addition, interest was undoubtedly driven by the property representing one of the most financially efficient entry points an investor can enjoy,” Mr Edwards added.
The vendors were Mark and Nicole Ryan which held it 16 years. It is leased to Tim and Alannah Long.
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