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

Previous

Press Release
Renowned Balmain watering hole set to exchange hands

Next

Press Release
Prime ALH-tenanted pub portfolio set to excite market
  • Home
  • About CBRE
  • Media Centre
  • Prime ALH-tenanted pub portfolio set to excite market

Prime ALH-tenanted pub portfolio set to excite market

16 July 2015
  • Email
  • Share
  • Tweet
  • Share

Sydney, 17 July 2015 – The strength of Australia’s hotel market is set to be tested, with the upcoming sale of three high profile assets across Victoria and Queensland, tenanted by the Australian Leisure and Hospitality (ALH) Group.

CBRE Hotels, in conjunction with Cropley Commercial, has been appointed to sell the portfolio by way of International Expressions of Interest, comprising the Kondari Hotel in Hervey Bay, the Seaford Hotel in suburban Melbourne and the Royal Hotel in Upper Ferntree Gully, Melbourne. The portfolio is expected to generate interest circa $90 million.

These asset types have proven extremely popular with investors through all economic climates, with the secure CPI-indexed annual income stream offering the purest form of annuity return.

The two Victorian assets in Seaford and Upper Fern Tree Gully are outstanding gaming operations and sit within the top 100 in the state rankings. Both venues occupy high profile corner sites, with the Seaford Hotel also incorporating a recently built Dan Murphy’s liquor outlet.

The Kondari resort hotel in Hervey Bay is situated on approximately 80,000sqm of land across four titles just 500metres from the shores of Hervey Bay in the township of Urangan. The hotel features 35 gaming machines with approval to increase the number of machines to 42. Additionally, the asset has a dual lane drive through BWS liquor outlet and a 68 room motel onsite. 

CBRE Victoria Senior Director Mark Wizel, who is steering the campaign on behalf of long-time client Bobby Zagame, stated:  "Single tenant properties that are leased to leading ASX listed companies such as that of Woolworths are in the highest demand from buyers in well over 30 years. Buyers believe in the Woolworths covenant, they understand the strength of them as an operator and have great confidence in the year on year performance of a brand such as Woolworths.”

Cropley Commercial’s Steve Cropley said: “As well as the undeniable quality of the tenant, each asset is underpinned by considerable underlying property, valuable gaming performance profile and strong business fundamentals.”

CBRE Hotels Victoria Director Scott Callow added: “ALH, 75% owned by Woolworths, is the country’s largest hotel operator with over 320 venues nationwide, and is an extremely sought after covenant by institutions as well as the private investor market. We expect huge interest from both buyer profiles as well as those private high net worth individuals who have purchased similar product in the past.”

CBRE Hotels National Director Daniel Dragicevich added: “The ALH sale and leaseback portfolio deal to Charter Hall of 54 venues last year was headline grabbing and CBRE’s recent sale of two assets in Townsville is evidence of further traction in this market segment. With the ever increasing market consolidation, offerings of these asset types are becoming rare and will be hotly contested when analysed in the context of the current interest rate climate.”

 

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 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 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.​

 

 

 

 

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