Corner pub a tempting package
THE freehold of landmark property the Beaudesert Hotel has been put on the market by the company that has owned it for the past decade.
The hotel, built during World War II, is being sold by Brisbane’s Cummins Dooley Holdings, which paid $4.175m for it in 2011.
The seller then was McVicar Trading, linked to Nerang residents Brad and Carolyn McVicar, which had owned it for 10 years.
The latest sales push is via an expressions of interest campaign run by Tom Gleeson and Scott Parker, of JLL Hotels and Hospitality.
The hotel is on a 2462sq m site on the corner of Brisbane and Short streets and is operated by the Star Hotel Group.
Star operates a 23-hotel portfolio in Queensland and South Australia that includes another Beaudesert hotel, the Railway, and Southport’s Hotel Pacific.
Its lease on the Beaudesert Hotel runs to 2034, with two 15-year options.
Net annual rent on the property is $348,000. The property includes a bistro, 27 gaming machines, a bottle shop, and 20 hotel rooms.
JLL’s Mr Gleeson this week said the gaming machines reverted back to the landlord when the leases expired.
He said this would provide robust and significant intrinsic value.
JLL’s Mr Parker said the demand for single-tenant, long-term passive investments was intensifying.
“The Beaudesert Hotel’s remaining 13-year initial term, along with 15-year options, provide buyers with a secure income stream within a growing area.”
The hotel was built in 1941, replacing what the Scenic Rim Heritage Register terms “an elegant old hotel”.
The register says the building’s key features include a curvi-linear brick facade, horizontally oriented timber sash windows, and a parapeted roof.
Expressions of interest close on March 18.
THE Gold Coast office market remains in a strong position despite challenges brought on by COVID-19.
Ray White’s latest Between the Lines commercial research shows across the Coast there was some rationalisation of office space in 2020, however inquiry levels rebounded towards the end of the year.
“Rapid growth in new business registrations has occurred with many start-up businesses needing space,” Ray White Commercial Gold Coast agent Luke Boulden said.
“This has been driving demand for space that’s notably more affordable and is lowergrade stock. This has helped the face rental position which has had little impact from COVID-19.”
Mr Boulden said despite an increase in vacancy across the Gold Coast, there was robust demand across A-grade and Bgrade stock.
“Prime rates are a fraction of what is being seen across our capitals and there are also sizeable incentives being offered,” he said.
“So, our office market is attractive to large blue-chip companies wanting to tick the above boxes, in addition to capitalising on our growing corporate network, while also harnessing the lifestyle we have to offer.
“With new supply of office space limited in 2021 … there’s confidence current vacancy rates will quickly come back to pre-COVID-19 levels and continue to tighten.
Ray White Commercial head of research Vanessa Rader said across the Gold Coast prime assets remain priced between $495 to $560 per square metre.