With a further two hotels sold for AUD 16 million, the Australian Leisure and Hospitality (ALH) Group's sale-and-leaseback scheme is proving popular among investors.
ALH has sold two more hotels for a combined total of AUD 16.625 million as part of its latest sale and leaseback campaign.
The assets sold through joint agents CBRE Hotels and Burgess Rawson were The Club Tavern & BWS liquor outlet in Caboolture (AUD 7.5 million) and the Benowa Tavern on the Gold Coast (AUD 9.125 million).
Both hotels were the latest in a group of five properties that recently went under the hammer. The previous assets include The Jewells Tavern and Mattara Hotel in Newcastle, New South Wales, which sold for AUD 5.82 million and AUD 5.253 million respectively, and the Granada Hotel in Berriedale, Tasmania, which sold for AUD 3.30 million.
CBRE Hotels Director Joel Fisher said all five assets were sold on yields ranging from 7.5% to 8%, which highlighted the strength of the ALH covenant and the demand for this style of asset in the current low-interest-rate environment.
"The sale of over AUD 31 million worth of ALH assets again highlights the confidence the market has in the ALH covenant and confirms the group's standing as the premier operator in the sector," Fisher said.
Burgess Rawson Director Billy Holderhead added, "The sale campaign generated significant national interest in the portfolio, leading to the sale of three properties under the hammer and a further two post auction. We had a broad spectrum of buyers enquiring on the assets, ranging from private investors across all Australian states, established publicans and international hedge funds."
The Benowa Tavern sale was completed last week to a Sydney-based private investor who had been keen to add to his commercial property portfolio.
Benowa Tavern is a substantial single-level hotel located on QLD Gold Coast with a large drive through BWS bottle shop, spacious bistro, public bar and sports bar. The asset was sold with a lease in place to ALH for an initial 20 years. The hotel is well-located, being just 4 km from the centre of Surfers Paradise.
Meanwhile, the Club Tavern was purchased by a Victorian-based private investor.
Located at Caboolture, 41 km north of Brisbane and constructed in 2000, the hotel includes a building area of 1,445 sq m on a strategically located 4,627 sq m site which is directly opposite the railway station, McDonalds, Moreton Bay Council Chambers and the recently completed AUD 22 million Queensland Government Cultural Centre.
In addition, the hotel licence secured ALH rights to two detached bottle shops off site.
ALH Group is Australia's largest and most successful hotel operator, and is 75% owned by Woolworths and 25% owned by the Bruce Mathieson group. ALH operate 321 venues around the country.
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