Kar­ratha sits for pub test

Pilbara News - - Property - He­len Shield

Im­proved con­fi­dence in the re­gions in the five months since re­ceivers McGrathNi­col took charge of two Kar­ratha pub and liquor stores have con­vinced them to test the mar­ket.

CBRE Ho­tels’ Ryan McGin­nity and Chloe Ma­son have been ap­pointed to sell the Tam­brey Tav­ern and Kar­ratha Tav­ern, which gen­er­ate a com­bined an­nual turnover of $21 mil­lion.

The venues, which went into re­ceiver­ship on April 28, had continued to trade and Mr McGin­nity said both ben­e­fited from a grow­ing lo­cal pop­u­la­tion and a strong fly-in, fly-out work­force. He cited re­newed con­fi­dence in Kar­ratha, which has be­come a rein­vig­o­rated, live­able re­gional cen­tre, but stressed both venues had al­ways traded well.

His up­beat Kar­ratha out­look was re­in­forced by Wood­side re­cently com­mit­ting to a $55 mil­lion res­i­den­tial re­fur­bish­ment project, some move­ment in apart­ment sales and in­vest­ment in the hospi­tal cam­pus.

“With a com­bined turnover of $400,000 a week (Tam­brey Tav­ern at $300,000 and Kar­ratha Tav­ern at $100,000) these are ex­tremely prof­itable venues,” he said.

“Sus­tain­ing such high turnover and prof­itabil­ity through the worst of the min­ing down­turn is in­cred­i­ble and we be­lieve the real up­side for these venues is yet to come.”

Ms Ma­son said it was un­likely new large-scale liquor li­censes would be ap­proved in Kar­ratha in the near fu­ture. “We an­tic­i­pate these two busi­nesses (will) be keenly sought af­ter by lo­cal pub­li­cans, na­tional owner-op­er­a­tors or listed groups,” she said. Kar­ratha Tav­ern, at 27 Bond Place, Pegs Creek, has two bars, a restau­rant, a re­tail bot­tleshop and 29 mo­tel rooms. It is on a 3320sqm site and gen­er­ates about $5.6 mil­lion a year. The Tam­brey Tav­ern, on Tam­brey Drive, Nickol, is on a 2.59ha site and in­cludes a tav­ern, bistro, func­tion cen­tre and an 850sqm su­per-sized re­tail liquor store.

It has an an­nual turnover of $15 mil­lion. It also of­fered scope for ex­tra res­i­den­tial or com­mer­cial de­vel­op­ment.

It was last sold for $19.5 mil­lion in 2012 af­ter a strong push to de­velop 149 apart­ments or 298 short-stay rooms did not come to fruition. Mr McGin­nity said de­vel­op­ment po­ten­tial “still ex­ists to­day and may oc­cur in the fu­ture as the de­mand for res­i­den­tial in­creases”.

Kar­ratha is at the epi­cen­tre of iron ore and oil and gas op­er­a­tions of sev­eral ma­jors and was ex­pected to ben­e­fit from re­newed con­fi­dence in the re­sources and oil and gas out­look.

The prop­er­ties are be­ing sold via an of­fers to pur­chase on a walk-in, walk-out ba­sis to­gether or sep­a­rately.

Of­fers close on Oc­to­ber 26.

The Tam­brey Tav­ern re­tail out­let.

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