Karratha sits for pub test
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.