Coolibah Hotel sold for $40 million
The real estate market for pubs is now in overdrive and the best example of that is the family-owned Vlandis Group selling the Coolibah Hotel at Merrylands in Sydney’s west, reportedly for about $40 million.
The pub sits on 8500 square metres of land. Recently renovated, it features a few bars, a bistro, a TAB gaming room and bottle-shop.
The deal was negotiated by Andrew Jolliffe, Ray White Hotels’ Asia Pacific director who was reluctant to give away too many details about the purchase price.
Joliffe said the owners had invested heavily in the hotel and with the market being what it is, they felt now is the best time to divest.
"We've spoken openly, regularly and confidently in the past about the emergence of the Super A-Grade hotel category, and the applicable yields associated with irreplaceable hospitality assets such as the Coolibah Hotel; and the off-market transaction we have managed on behalf of our client is further and very clear illustration of the strength and depth of the market in this category sub-set,” Joliffe told The Shout.
The purchaser of the hotel has yet to be revealed but Joliffe indicated it was another hotel group.
And that means one thing: the market value for major gaming pubs are on the up.
“The profile of the purchaser, much like our vendor, is one of an established and very well respected hotel group,” Joliffe told The Shout.
"The market has been patently well supported by sophisticated on and off-shore investor groups, and we feel this trend will continue; however it is most reassuring to all stakeholders in the space when the considered view of vastly experienced hoteliers manifests itself in such a deliberate statement as has been made regarding the acquisition of this irreplaceable hotel."
The sale of the pub comes after John Singleton’s Marlborough Hotel in Newtown was sold last month to the pub group headed by Bruce Solomon and celebrity chef Matt Moran. The purchase price: more than $30 million.
by Leon Gettler, May 5th 2017
