logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Australia
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Investment Management (CBRE Investment Management)
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Agribusiness
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Government Real Estate Advisory & Transactions
      • Hotels
      • Industrial & Logistics
      • Office
      • Residential
      • Retail
      • Retirement & Healthcare
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt and Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Accounting & Reporting Solutions
      • Structured Transactions & Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Property Sales
      • Recovery & Restructuring
      • Valuation & Advisory
    • Services for Occupiers
      • Facilities Management
      • Leasing & Advisory
      • Occupier Consulting
      • Portfolio Services
      • Project Management
      • Sale and Leaseback
      • Structured Transactions & Advisory
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Agribusiness
      Hotels
      Industrial & Logistics
      Institutional Investments
      Metropolitan Investments
      Office
      Residential
      Retail
  • Research & Insight
    • Australia Research
      Asia Pacific Research
      Global Research
      Expert Opinions
      Talking Property Podcast
  • People & Offices
    • Pacific Executive Committee
  • About CBRE
    • [email protected] - LGBTQI+ Inclusion
      Careers
      Case Studies
      Client Tools
      Corporate Information
      Environmental, Social and Governance
      Investor Relations
      Media Centre
      Reconciliation
      The Place Makers

Next

Press Release
Site Sale Could Pave Way for $1 Billion+ Last Mile Estate
  • Home
  • About CBRE
  • Media Centre
  • Strong investor demand for Coles and ALH pubs continues

Strong investor demand for Coles and ALH pubs continues

18 January 2015
  • Email
  • Share
  • Tweet
  • Share

Melbourne, 19 January 2015 – A private Melbourne-based investor has outlaid $6.35 million for the Western Tavern in Mount Gambier in the latest signal of strong buyer demand for pubs leased to major national operators such as Wesfarmers Ltd subsidiary Liquorland and the Australian Leisure and Hospitality Group (ALH).

CBRE Hotels​' Joseph Du Rieu and Scott Callow negotiated the sale of the Mount Gambier hotel, on behalf of Hotel Property Investments (HPI). HPI is a publicly listed investment trust that owns a portfolio of approximately 50 properties, the majority of which are leased to Liquorland.

Mr Du Rieu said; “We received six offers for​ the property, with the sale price reflecting an initial yield of 7.75% based on the long term lease to Liquorland. The strong buyer interest highlights the continued pent up demand from both private investors and large corporates for freehold hotel investments with AAA covenants.”

This was evidenced, Mr Du Rieu said, by major 2014 transactions such as Charter Hall’s acquisition of 54 pubs, all of which are tenanted by ALH, a group 75% owned by Woolworths and 25% owned by renowned publican Bruce Mathieson. The Charter Hall acquisition was concluded at an initial yield of 6.8%.

The Western Tavern is located at 178 Jubilee Highway West in Mount Gambier - South Australia’s second largest city, which boasts a permanent population in excess of 25,000. Mount Gambier is located some 460 kilometres south east of Adelaide and approximately 450 kilometres west of Melbourne.

The tavern comprises 33 gaming machines, bistro dining, sports bar and drive through Liquorland bottle shop.

“The campaign attracted interest from across the nation, with inquiries from investors in most capital cities, together with locals in Mount Gambier,” Mr Du Rieu added.

The new owner will have the benefit of 4% yearly increases to the annual net income of $492,032 for the remaining 13 years of the Liqourland lease. 

CBRE’s Mr Callow said the transaction followed a flurry of freehold hotel investment sales in the closing months of 2014.

“It is evident investors continue to exhibit demand for quality hotel investments, resulting in further yield compression,” Mr Callow said.

“Continued low interest rates and the higher returns on offer for hotel investments are seen to be significant factors contributing to increased levels of buyer demand,” Mr Callow added.  

​​​​​​​

For Australian/international news or global stories, follow us on Twitter.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.au.
​

Media Contacts

Kathryn House Headshot
Kathryn House
Communications Director
Pacific
+61 2 9333 3585
+61 402 465 440
  • Corporate Information
  • Corporate Responsibility
  • Media Centre
  • About CBRE
  • Careers
  • Case Studies
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Australia Privacy Policy
  • Global Web Privacy and Cookie Notice
  • Whistleblower Policy
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • Youtube