Brisbane

National buyer interest tipped in Queensland hotel offering

The Oonoonba Hotel in Townville and the Commercial Hotel in Redbank are to be offered for sale in a move tipped to attract national buyer interest.

12 Oct 2018

The Oonoonba Hotel in Townville and the Commercial Hotel in Redbank are to be offered for sale in a move tipped to attract national buyer interest.
 
CBRE Hotels’ agent Paul Fraser will steer the Expressions of Interest campaign for the Queensland assets in conjunction with Power Jeffery & Co agents Peter Power and Andy Nason.

CBRE’s Mr Fraser said the opportunity was expected to appeal to both investment funds and owner occupiers, with the hotels being offered individually or as a portfolio.

“The hotels are currently operated by a management company, which will appeal to funds wanting to immediately reap the benefits of strong cash flow businesses offering high yields,” Mr Fraser said.

“Alternately, owner operators could seek to acquire the assets with a view to actively managing the businesses moving forward.”

Mr Fraser noted that both hotels had a long history of producing consistent trading profits. 

“They also occupy large land holdings and offer strong underlying gaming value, which will help to attract national buyer interest,” Mr Fraser said.

The Commercial Hotel is located on a 2,702sqm site and is 300 metres from the Redbank Train Station and Ipswich Motorway, connecting Brisbane to Ipswich. 

The hotel comprises a sports bar with a separate TAB area, gaming room with 24 machines, indoor bistro and adjoining outdoor dining area, modern kitchen facility, walk-in bottle shop, four guest rooms and an administration office on the first floor.  

“The gaming machines are performing 41% higher than the LGA net metered win, per machine per day. This indicates that the gaming room could increase its fleet from 24 to 45 machines, which would enhance it’s positioning in the area,” Mr Fraser added. 

Power Jeffery & Co’s Mr Power noted that the Commercial Hotel was located just 2.6km north of the recently approved, $5bn light armoured vehicle project, which was set to significantly benefit the area over the next ten years.

The Oonoonba Hotel is situated on a 3,739sqm corner site and offers multiple revenue streams, including a main bar with TAB/Keno, lounge bar, gaming room with 28 machines, a 60-seat bistro with children’s play area and a well-equipped kitchen.

There is a dual lane, drive-in bottle sales area, eight motel rooms and a car park for approximately 60 vehicles.

“Outside of Brisbane, Townsville has more infrastructure projects currently underway than any other town in Queensland, including a waterfront redevelopment and a new $250million sports stadium, which is underpinning interest in city investment opportunities,” Mr Power said.

He noted that an opportunity existed to rearrange the floor plate of the Oonoonba Hotel by moving the gaming room over to the current pool table area to increase the capacity of the restaurant and allow it to cater for functions throughout the year. 

“The gaming room would also benefit greatly, with the central bar able to service the gaming room, a better designated outdoor smoking areas available adjoining it and, most importantly, a discrete entry and exit straight from the car park,” Mr Power said.

He also noted that while the Oonoonba Hotel and the Commercial Hotel did not offer detached bottle shops, the commercial licences of both properties allowed for up to three detached bottle shops within a 10-kilometre radius of the main premises, proving a value add opportunity.

Expressions of Interest close November 15, 2018 at 2pm (AEST).
 
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

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 2017 revenue). The company has more than 80,000 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.

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

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.