Southerners on the hunt for pubs
SOUTHERN pub investors searching for yields have shifted their focus to the Queensland market.
According to CBRE’s latest Australia Pub Trends report, investors are being priced out of the NSW and Victorian market and are turning their attention to Southeast Queensland, with metropolitan assets remaining their preferred choice.
The report found demand for coastal assets has continued as investors look to take advantage of the strong tourism market.
CBRE Hotels Research manager Ben Martin-Henry said key industry operators such as Merivale and Redcape went on buying sprees in NSW and Victoria last year which tightened of yields sent potential investor north.
“Investors are being priced out and facing a lack of supply particularly in metropolitan NSW, so buyer attention is being drawn to Southeast Queensland opportunities,” he said.
“However, the pub sector (in Queensland) is one of the most tightly held in the country and it’s hard to find owners willing to part with prized assets.
“There’s a large pool of investors looking to take advantage of the sunshine state’s strong tourism fundamentals, and we can expect to see more transactions taking place along the Queensland coast in hubs such as Cairns and Airlie Beach this year.”
Last year southern investors picked up several Queensland pubs, with one of the highestprofile being New Farm’s Queens Arms Hotel on James St, which sold to a syndicate headed up by Sydney hotelier Peter Ashelford and businessman and Sydney Roosters chairman Nick Politis.
Some of the high-profile pubs currently on the market include the Normanby Hotel in Brisbane and the Stradbroke Island Beach Resort, which has attracted strong interstate attention.
According to the CBRE report, activity in western Queensland continues to be subdued with “mining centric” regions considered by investors to be too risky.
“However, for savvy investors keen on a counter cyclical play, areas like Gladstone and Townsville appear to be proving popular,” the report said.
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