Sydney buyer swoops on Brisbane’s Acacia Ridge for $26 million
In what has to be one of the pub deals of the year, Queensland’s largest hotel, The Acacia Ridge, has been sold to an unidentified Sydney fund for $26 million.
It makes a nice profit for Sydney hoteliers Peter Calligeros and partner Steve Farley who bought the hotel for $16 million in 2014.
Sitting on 18,000 square metres and featuring a conference centre, accommodation, drive-through and bottle shop, and boasting a consistently strong gaming profile with 45 Electronic Gaming Machines, the site also offers a massive development potential.
After striking the deal with Glenn Price from CBRE Hotels, Ray White’s Asia Pacific director Andrew Jolliffe said there were several reasons for the good price.
First was the revenue potential. Then there was its location, sitting on a 1.8 hectare block in Beaudesert Road.
Then there was the expansion and beautification of the area near it including Sunny Bank, Sunny Bank Hills and the $600 million Cornerstone Living Master Plan development at Cooper Plains.
“The response the strategic campaign generated enjoyed clear connection with astute hoteliers, as well as property developers who saw mixed and alternative use opportunities available in respect of the under-utilised aspects of the land holding,” Mr Jolliffe told the Brisbane Courier Mail.
“Interest from Queensland, Victorian and NSW investors was particularly strong, as well as from some of our key clients we have relationships with out of our Northern Territory office.”
He said it was an illustration of how the hotel industry was now one of the country’s hottest investment markets.
“The confluence of the historically low interest rate cycle, ready availability of senior debt, the low Australian dollar driving inbound revenues and the strength of weekly cash receipts at the point of sale, when collectively distilled, render the opportunity to acquire A grade hospitality property wholly compelling,” Mr Jolliffe said.
by Leon gettler, November 30th 2016
