Gallagher Hotels lock in first pub leasehold in Queensland
A WELL known NSW hotel operator has acquired its first pub in Queensland, buying the leasehold of the Meadowbrook Hotel.
Gallagher Hotels, which owns several assets across NSW including PJ Gallagher’s Irish Pubs and Mr G’s, paid $6 million for the 39 years remaining on the lease of one of Southeast Queensland’s largest cashflow pubs.
The sale was handled by CBRE Hotels’ Paul Fraser on behalf of Pelathon Management Group.
“This is a prime example of a high-profile Sydney publican looking at opportunities north of the border, where capitalisation rates are substantially softer than their counterparts in NSW,” Mr Fraser said.
On a 5934sq m site on the corner of Loganlea Rd and Logandowns Drive, in Logan south of Brisbane the hotel’s diverse cashflow come from bars, alfresco dining restaurant, accommodation, 40 gaming machines and a drive-through bottle shop.
Mr Fraser said Meadowbrook Hotel was in a renowned high gaming corridor between Brisbane and the Gold Coast.
“It’s prominently located in Meadowbrook’s commercial centre, with trade underpinned by infrastructure such as Logan Hospital, the Logan campus for Griffith University, Meadowbrook Plaza and a new Woolworths-anchored shopping centre,” he said.
“This played a significant part in the high level of interest we received on this asset.”
CBRE Hotels is also currently marketing another leasehold asset, the Criterion Tavern, with similar strong gaming performance, with the 25 gaming authorities owned by the leasehold owner.