Melbourne pub portfolio on the market

A Melbourne pub group has put its entire portfolio of 12 hotel leaseholds on the market, with more than 700 gaming machines included with the assets.

The Dominion Hotel Group portfolio is being sold in an expressions of interest campaign by Tony Bargwanna of Ray White Hotels and Steve Cropley of Cropley Commercial.

The portfolio comprises the Berwick Springs Hotel, Croydon Hotel, Foresters Arms Hotel, Kealba Hotel, Longbeach Hotel, Pakenham Hotel, Pakenham Inn Hotel, Royal Oak Hotel, Templestowe Hotel, Victoria on Hyde, Waterloo Cup Hotel and Cross Keys Hotel.

Bargwanna told TheShout buyers have the opportunity to acquire the pubs individually or in one line.

"Rents across the board represent less than 25 per cent on net profit with no market reviews for the next 13 years on some of Melbourne's best gaming assets," he said.

Australian Leisure & Hospitality Group is likely to be precluded from the purchase because it is already on the cusp of Victoria's gaming machine cap, but Bargwanna is still confident the pubs could be sold in a single transaction.

Cropley said all hotels enjoy large footprints with excellent car parking and full convenience for clientele.

"We have already received strong interest from parties known to us, and they recognise the quality the investment represents," he said.

Source: The Shout, 21 September 2012