Brisbane

Charter Hall purchases Club Hotel Waterford for $22 million

Club Hotel Waterford, a prominent Coles-leased hotel in South East Queensland, has been acquired by the ASX listed Charter Hall Long WALE REIT for $22,000,000.

14 Sep 2018

Club Hotel Waterford, a prominent Coles-leased hotel in South East Queensland, has been acquired by the ASX listed Charter Hall Long WALE REIT for $22,000,000. 

The hotel is leased to Liquorland, a subsidiary of Wesfarmers’ Coles division. Coles (Liquorland) is the country’s second largest hotel operator, with a portfolio of 89 pubs. 

CBRE Hotels’ Director Paul Fraser managed the sale process on behalf of Waterford West Pty Ltd. 

“In a sign of the continued strength of the hotel sector, the sale of the property was transacted at a yield of 5.68 per cent - a new record for a freehold pub investment in Queensland,” Mr Fraser said. 

Waterford West Pty Ltd’s Richard Pegum said; “We were delighted with the outcome and very impressed with CBRE’s management of the process, which generated significant investor interest.”

Club Hotel Waterford occupies a 1.1ha corner site, offering two main arterial road frontages. The tavern features 45 gaming machines, a sports bar, First-Choice liquor barn, three detached bottle shops, and is set to undergo a $1.25m refurbishment under the terms of the new lease agreement.

“The new double net lease has an initial 15-year term with three options of ten years, ensuring a long term, secure investment opportunity,” Mr Fraser noted. 

“Assets of this quality are highly sought after and typically generate buyer interest from multiple groups seeking long term, security of income. Even with all economic indicators pointing to an increase in the cost of debt over the longer term, confidence remains strong for this asset class with the limited availability of stock being a major factor in the end pricing.”
 
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.