The Feros Group is outlaying close to $10 million for the Red Steer Hotel Motel, five kilometres north of Wagga Wagga.
On 5000 square metres at 6 Old Bowmen Road, Cartwrights Hill, the asset includes a pub with multiple bars, a beer garden and a gaming area with TAB facilities and nine electronic gambling machines.
A major refurbishment was completed in 2015.
Another building contains 13 guest suites and a three bedroom manager’s residence.
Feros intends to update the asset immediately upon seizing occupancy next month.
The deal is the eighth Wagga Wagga freehold going concern to trade in two years, HTL Property’s Xavier Plunkett, the agent, said.
Two of the biggest sales were struck recently – including the Thomas Blamey Tavern, which was acquired by a consortium including Arthur Laundy for $25m, and the Victoria Hotel, which Harvest Hotels snapped up for $29m.
Wagga Wagga is about 130 kilometres north of Albury-Wodonga (story continues below).
Renovation to begin soon
Mr Plunkett sealed the Cartwrights Hill deal ahead of a scheduled auction.
“The strong growth in the Boman Industrial Estate and northern Wagga Wagga residential growth corridor as well as the proximity to the Charles Stuart University, were key selling points,” the agent said.
“We continue to see strong capital appreciation in the regional pub market,” he added.
“Undercapitalised hotel assets in strong regional centres such as Wagga Wagga continue to be highly sought after by experienced Sydney based hoteliers seeking value outside of traditional metropolitan markets,” according to the executive.
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