Investors look to regional pub acquisitions
Regional NSW has seen an upswing in pub sales in recent times, with the trend set to continue.
Recent transactions have involved media tycoon and WIN boss Bruce Gordon, who sold the famed pub the Scarborough Hotel for $9.5 million to Epochal Hotels. Investment funds have also been active with one snapping up a Queanbeyan hotel.
Investors are keen on the area, despite a downturn last year due to rising interest rates.
The largest trade was The Jerrabomberra Hotel in Queanbeyan, which sold to Harvest Hotels for an estimated $25 million. It marked the first purchase by the newly merged Harvest Pub Fund, which holds eight high quality, large-format pubs in high-growth regions across NSW.
Jerrabomberra sits on a 2759 sqm block opposite the Jerrabomberra Village Shopping Mall. It features a drive-thru bottle shop, bistro, sports bar and 30 machine gaming room.
“The Jerrabomberra Hotel is an A-grade regional venue that presents all the intrinsic fundamentals that astute purchasers are drawn to,” broker HTL Property’s Sam Handy said.
“Exclusive catchment, high foot traffic positioning and ample parking are strategic trading cornerstones which enable successful trading longevity.”
Harvest has been looking at regional properties in the area for year according to managing director Chris Cornforth.
“We’ve previously owned and operated pubs in the nearby community of Yass, so are well acquainted with the broader region, and in meeting all our required demographic metrics, Queanbeyan has been a target area of ours for a long time,” he said.
Other sales across NSW include the $32 million sale of the Seabreeze Hotel in South West Rocks and the Central Hotel in Shellharbour for $25 million.
WIN has moved out of property to focus on media assets.
The sale of the Scarborough Hotel marked the sale of the oldest licensed premises in the area.
Epochal Hotels chief executive Glenn Piper called it “a rare gem among Australian pubs”.
“Pubs are not part of our core business and it is time for a new owner to guide this iconic site into the future,” WIN Corporation chief executive Andrew Lancaster said.
“We are happy to have sold the Scarborough Hotel to Epochal Hotels as we are passing it into safe hands with a proven track record. Epochal Hotels has a strong understanding of pubs and hospitality, and we look forward to seeing what fresh ideas they bring to the hotel.”
Epochal Hotels is currently revamping Freshwater’s Harbord Hotel, overseeing Newcastle’s Merewether Beach Hotel and refurbishing the Commodore Hotel in McMahons Point.
Jonathan Jackson, 8th April 2024
