Coles backed pub, bottle shop fetches $20.5m
An inner city Adelaide hotel investment has sold for $20.5 million following a renovation.
Also with a Liquorland bottle shop, the Payneham Tavern at 319-327 Payneham Road, Royston Park, is tenanted to Coles, which is into a 20 year lease agreement with two 10 year options.
Rent increases are fixed at four per cent for the initial term.
The occupier also pays all outgoings.
Royston Park is about four kilometres north east of town.
The deal comes a week since we reported the contemporary Osmond Motel at Fullarton, four kilometres south east of the CBD, traded for $12.4m – a 6.16 per cent yield.
Land, gaming
On 7887 square metres, the Payneham Tavern contains a bar, bistro and gaming room with 32 electronic gambling machines.
Recently reopened following a renovation, Coles leases it and the bottle shop.
LJ Hooker’s Mario Bonomi brokered the off-market deal.
The seller, a Sydney based private investor, picked it up Hotel Property Investments in 2016 for $10m – a 5.8pc yield.
Also today we are reporting Marlow Hotel Group is paying Momento Hospitality $77m for the Silverwater Hotel, 15 km west of Sydney.
Earlier this week meanwhile, Mona Castle Group, backed by Western Bulldogs players past and present, bought the Spotswood Hotel, in Melbourne’s inner west.
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