Last remaining Coles operated hotel in NSW offers prized leasehold opportunity
Last remaining Coles-operated hotel in NSW offers prized leasehold opportunity
| 12 February 2018
The last remaining Coles-operated hotel in NSW – Northlakes Tavern on the Central Coast – is being offered for sale.
Located on Pacific Highway at Charmhaven, between Newcastle and Gosford on the Central Coast - and adjacent to a Coles-anchored shopping centre - Northlakes Tavern offers a high cashflow leasehold opportunity.
Opening in 2007, the tavern offers favourable lease terms with the initial 15-year lease term expiring in 2027 and eight further five-year options available. The Hotel License and 24 Gaming Machine Authorities are also included in the sale.
The tavern currently generates an average revenue of more than $80,000 per week with current annual rent at a very palatable level.
Mr Dragicevich said the sale represented an outstanding leasehold opportunity in an extremely attractive coastal growth location.
“The Northlakes Tavern is the only Coles’ operated venue remaining in NSW and we expect its sale will attract significant investor interest from astute operators that recognise the rarity of such an offering in a tightly held enclave of the market,” Mr Dragicevich said.
“Aside from the transparent revenue growth opportunity, the venue is extremely well positioned within an area of the NSW Central Coast earmarked for future mixed use development and, is virtually unopposed in terms of local hotel competition. The venue’s main road position adjacent to a shopping centre, 180 on-grade car parks and large format offering equate to a very compelling hotel investment proposition.”
Mr McDonald said the recent sale of multiple leasehold assets in NSW, where the license and gaming machine ownership were owned by the tenant, highlighted the strength of investor demand for the asset type.
“2017 alone saw the sale of venues such as the Collector Tavern in Parramatta and the Verandah Bar in the Sydney CBD – both of which attracted significant purchaser interest given the appeal of hard asset ownership as well as the high cash flow nature of a well operated, leasehold hotel,” Mr McDonald said.
Northlakes Tavern is being offered for sale via Expressions of Interest closing March 8.
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