Pubs raise the bar
THE market for Gold Coast pubs is showing plenty of renewed fizz with buyers spending more than $10 million on the sector in the past month.
Sales include a retail complex anchored by the familyrun Merrimac Tavern, which sold at auction for $4.55 million, the Advancetown Hotel Motel for more than $2 million, and the Courthouse Hotel in Southport for $4.07 million.
The Merrimac Tavern was marketed by Michael Willems, of Ray White Commercial, who said the winning bid from a Gold Coast private investor reflected a yield of 7.6 per cent.
He said more than 60 inquiries were fielded during the campaign and there was spirited bidding among the 12 bidders on auction day at the Gold Coast Turf Club.
The property at 10-16 Merrilaine Cres, Merrimac, has a net lettable area of 1233sq m, more than half of which is leased to the tavern.
It sits on a 3548sq m site with 44 parking spaces and is positioned on a high-volume traffic road.
“This property attracted considerable interest as it offered an outstanding opportunity to secure a significant strategic investment on a well-located block with multiple tenants and extensive frontage to Gooding Drive,” Mr Willems said.
The Advancetown Hotel Motel was sold by the Nerang RSL club to Gold Coast hoteliers who plan to be owner-operators. Peter Power, of hotel brokers Power Jeffrey & Co, negotiated the sale, and said he fielded a dozen inquiries during the expressions-of-interest campaign.
“The buyers saw an opportunity to continue to run the hotel while improving the business,” he said.
Mr Power said it is rare for pubs to come on the market, because the sector is largely controlled by Coles and Woolworths’ Australian Leisure and Hospitality Group.
“That means there is a lot of interest when something becomes available,” he said.
Advancetown Hotel Motel occupies a 7.186ha two-title holding at 402 Nerang-Murwillumbah Rd. It comprises a 2740sq m tavern with a bar, bistro, commercial kitchen, lounge and adjoining 563sq m covered outdoor dining area as well as six motel units.
The asset also includes a detached bottle shop at Nerang Fair Shopping Centre in Nerang.
A deal to buy the Courthhouse Hotel, marketed by Colliers International’s James Crawford and Steve Clark, settled last month after a number of false starts.
It is understood the Sydney buyers, who have connections to Korea, have not settled on plans for the 1631sq m site.
Industry sources said they are assessing a number of options which include retail outlets, restaurant, and bar, or a stand-alone bar.
The pub was sold by Hot Tomato radio station boss Hans Torv, who acquired the property through Clipper Group Holdings in 2005.