$60m in sales as two pubs change hands on same day

TWO Gold Coast pubs, one operating and the other yet to open, have changed hands in one frothy $60m day.

The Varsity Lakes Tavern, Dan Murphy’s and an adjoining Fitness First in Burleigh Waters have sold for $38m, while the Pimpama Central Tavern has sold off the plan for $22.2m.

Billy Holderhead, of Burgess Rawson, on Wednesday said the sales, located at opposite ends of the Gold Coast’s rapidly growing corridor, demonstrated the underlying strength of Queensland’s pub market.

“Pubs are certainly appealing to investors looking to channel frustrated capital into high-performing asset classes with quality tenants.

“Opportunities like these are few and far between and buyers are highly motivated,” Mr Holderhead said.

The Varsity Lakes Tavern and Dan Murphy’s is operated by ALH, a subsidiary of Endeavour Group, and was jointly marketed by Savills Hotels and Burgess Rawson.

The 1.7ha site has 128m frontage to Bermuda St and includes a long-term sub-lease to Fitness First.

The seller, Brisbane’s Ganim family, bought the property for $16.14m in 2012. The buyer is a Korean family based in Melbourne, who had been looking for commercial investment properties in Victoria for 12 months before turning their sights to Queensland.

The Pimpama Central Tavern, due to be completed in mid-2022, has sold to a private family investor.

The tavern is being developed and built by the ADCO Group and leased to the Terry Morris-linked Good Times Pub Group.

The tavern was jointly marketed by Burgess Rawson’s Glenn Conridge and Kelly & Co Property’s Pat Kelly. Mr Conridge said that the tavern – forecast to provide a net return to the owner of $1.04m in its first year – attracted interest from across the country and internationally.