The Riversdale operated Australian Pub Fund has listed Brisbane’s The Elephant Hotel for sale as part of an ongoing disposal strategy.
CBRE’s Paul Fraser and Jack Morrison in conjunction with JLL’s Tom Gleeson and Nick Butler will steer the sale campaign for the Fortitude Valley property.
Australian Pub Funds Director Matthew Beach said; “Given the current low interest rates and the lack of quality stock on the market, we feel the timing is right to exit the property after seven years of ownership.”
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 Brisbane near city market has been starved of genuine mixed use, value add opportunities in recent times, particularly those with the adaptability and flexibility offered by The Elephant Hotel,” CBRE Associate Director Jack Morrison said.
“The four-level character building provides multiple avenues for value creation underpinned by its prime, mixed-use location, just across from the Fortitude Valley Train Station in an area which serves as a natural extension to the Brisbane CBD.”
Mr Morrison noted that the area’s ongoing gentrification was expected to underpin buyer interest, with the sale providing a multi-faceted opportunity, given the ability to secure the property freehold and the long-standing business.
JLL Hotels Vice President Tom Gleeson said; “The asset has a strong gaming room with 42 authorities and room for immediate upside with limited CAPEX requirements including machine upgrades, Ticket-In Ticket-Out (TITO opportunities) and room for an additional three machines.”
“Prospective purchasers are also being given the opportunity to consider the asset in two key formats – either as a freehold going concern or with a long-term tenant on a sale and leaseback,” Mr Gleeson added.
The Expressions of Interest campaign closes 28 November 2019.
About CBRE Group, Inc.
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.
