The Premier Hotel in Newcastle’s Broadmeadow has hit the market, meeting continued demand for pub assets in one of NSW’s key growth regions.
Ben McDonald and Daniel Dragicevich from CBRE Hotels, in conjunction with Deane Moore from Moore and Moore Real Estate, have been exclusively appointed to market the asset. The campaign is timed to capitalise on the continued migration of Sydney based capital into coastal markets that offer higher yielding assets with clear potential for an uplift in earnings uplift and capital value generation.
The hotel is being sold on behalf of Newcastle-based Castle Hotels, headed by industry identity Rolly de With, who in addition to the Premier owns a stable of Newcastle’s favourite watering holes including the Junction Hotel and Sunnyside Tavern.
Located at the gateway to the Newcastle racing precinct, at the well-known ‘nine ways’ intersection in Broadmeadow, the Premier Hotel occupies a 1,076sqm site with dual street frontage and significant exposure to Lambton Road.
CBRE Manager, Ben McDonald, said; “The Premier Hotel offers commercial investors and publicans the opportunity to secure a strong cash flow business with an enviable mix of trade in one of Newcastle’s most exciting, up and coming precincts.”
Mr McDonald added; “With annual revenues in excess of $3.6m, and capital value underpinned by 17 poker machine entitlements, strong market interest is anticipated from local operators and Sydney-based publicans seeking a foot hold in the Newcastle market or to build on an existing portfolio of pubs or commercial property investments.”
Moore and Moore Principal Deane Moore identified the prominent location and the property’s favourable planning controls as key buyer drawcards. Mr Moore noted; “The Premier’s flexible mixed use zoning, 11m height limit and favourable floor space ratio provides investors with immediate development upside and the opportunity to create a feature property with approximately 2,200sqm of gross floor area over four levels subject to the relevant planning approvals.”
Mr Moore added; “The neighbouring suburbs of Broadmeadow and Adamstown are set to expand significantly over the short term with seven mixed use residential projects set to launch in 2018/19. The Premier Hotel will be a significant benefactor of this growth.”
The sales campaign comes hot on the heels of prominent local pub deals including the Nags Head Hotel in Adamstown for $11m, Duke of Wellington Hotel, New Lambton for $8.4m and the Prince of Wales and Mary Ellen Hotels, both in Merewether, for $7.5m and $7m respectively.
The national Expressions of Interest campaign is scheduled to close on Thursday 28th September 2017.
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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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.