Gold Coast pubs fetch $60m
Investors have outlaid $60.2 million on two Gold Coast pubs.
In the priciest deal, the Ganim family is banking $38m for Varsity Lakes Tavern at Burleigh Waters, about 10 kilometres south of Surfers Paradise.
The vendor, founder of law firm Hopwood Ganim, paid ALH Group $16.14m in 2013.
At the time the property was offered with a leaseback over the hotel and bottle shop – all of which the hospitality group, now part of the ASX-listed Endeavour, still occupies.
Another component on the 1.7 hectare property is leased to Fitness First.
Bruce Mathieson developed the asset in 2005.
Low yield
The Burleigh Heads property was offered this time around with a blended Weighted Average Lease Expiry of 7.7 years.
The buyer is a Melbourne based family.
The price reflects a low 4.5 per cent net passing yield.
Burgess Rawson’s Billy Holderhead with Savills’ Tony Bargwanna and Joseph Ganim were the agents.
The brokers said strong local population and infrastructure investment, combined with the performance of pub assets in the region, attracted interest from interstate private investors, institutions and fund managers (story continues below).
“In this case, the property was purchased sight unseen,” Mr Bargwanna added.
Pimpama Tavern
Meanwhile at Pimpama, about 24 km north of Surfers Paradise, ADCO has sold a pub off the plan.
The Pimpama Central Tavern has collected $22.2m from a Brisbane family.
The hotel was offered with a 10 year lease to Terry Morris’ The Good Times Group.
On 7282 square metres, the investment, due for completion mid-next year, also includes a service station, fast food outlet and Hoppy’s car wash
Based on the starting rent, the sale price reflects a 4.7pc yield.
Burgess Rawson’s Glenn Conridge with Kelly & Co Property’s Pat Kelly were the agents.
“Pimpama Central Tavern presented a rare opportunity to invest in a brand new, architecturally designed tavern on a massive corner site in the heart of one of the fastest growing regions in the country,” Mr Conridge said.
“This [price] is an excellent outcome for an exceptional investment opportunity and sets a new bar for the northern end of the Gold Coast,” he added.
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