Gold Coast pub sells for a nice profit
by Leon Gettler
The Hope Island Tavern in the north Gold Coast region has sold for a tidy $10.2 million.
That’s a good profit for the Anthony Moreton Group and Pryde Group which purchased the pub in May 2014 for $6 million, securing a 15-year lease deal with the Coles’ Liquorland subsidiary along the way.
Private investment company Tavgrow bought the 9982 square metre property at Broadwater Avenue which had attracted 100 inquiries.
The big drawcard for investors is Liquorland sitting on long term lease stretching out into 2029 with eight 5-year options. There is also a potentially lucrative development application in place for retail development on the spare land site at the property.
The pub is envisaged as being part of the town centre for the suburb of Hope Island.
So the application is for a retail centre next to the tavern, with close to 10,000 square metres of retail space.
Add to that the fact that the hotel has been upgraded and now includes a sports bar, a bistro and bar, a gaming room and a walk-in bottle shop.
Woolworths and Aldi have already pre-committed to the retail project.
The sale was handled by Colliers International's Darrell Irwin, Stewart Gilchrist and Neil Scanlan .
Irwin said the pub had attracted a lot of investor interest.
“We had almost 100 enquiries and four offers to purchase before the campaign closed. In addition to its secure covenant, there is also potential for further development in the future as a significant balance of the site is still available, with the tavern gross floor area being a total of 1565 square metres,’’ Irwin told The Shout.
“The Gold Coast is in a good state economically off the back of significant economic growth in the last year or two.
“There’s a strong demand from the market for hotels, as tourism is expected to grow in the next couple of years, and this bodes particularly well for the Gold Coast. Barriers for entry for new hotel development has also strengthened the position of existing hotels.
“With a strong demand and limited supply, we will see further price growth on the Gold Coast within the next 12 months.”
11th April 2016
