Brisbane's Elephant Hotel sells for more than $20m
| 18 February 2020
A Sydney independent pub group, Tilley and Wills Hotels, had acquired The Elephant Hotel in Fortitude Valley for more than $20 million in its first foray into the Brisbane pub market.
CBRE’s Paul Fraser and Jack Morrison in conjunction with JLL’s Tom Gleeson negotiated the sale on behalf of the Riversdale operated Australian Pub Fund.
The expansive, multi-level building offers four separate bars, a large outdoor beer garden and a gaming room with 42 machines. It occupies a large 1,237sqm freehold site in a densely populated and highly frequented inner-city entertainment and business precinct.
“The high-profile sales campaign generated over 60 enquiries and eight offers nationally, highlighting the appetite for large format going concern hotels with diverse income streams and obvious operational upside opportunities,” CBRE’s Mr Fraser said.
“Demand strongly outstrips supply in Queensland’s South East corridor, which has led to heightened market tension and an overall tightening of cap rates. With cost of debt at an all-time low we don’t see this current environment changing in 2020; it is certainly a sellers’ market right now.”
JLL’s Mr Gleeson added; “The incoming operators, Tilley and Wills Hotels, have an enviable track record of successfully re-inventing venues and are excited to bring their distinct style to the iconic Elephant Hotel and capitalise on the long-term prosperity of the Fortitude Valley precinct.”
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.