Coles buys first pub in four years

Supermarket giant Coles has purchased its first pub in four years, in stark contrast to its recent practice of selling hotel establishments around the country.

In accordance with Queensland’s liquor laws requiring a hotel licence to anchor retail liquor outlets, the nation’s second-largest pub operator has purchased Marina Quays Tavern on Hope Island.

The transaction was brokered by Knight Frank director of hotels Craig Harley, who said the big name purchase reflected a positive sentiment for the hotel marketplace in Queensland.

“The substantial hotel property is adjacent to a planned shopping centre, retirement village, and service station, and is surrounded by residential development that enjoys high visibility and extensive passing traffic,” said Harley.

Coles head of property for liquor and hotels, Ben Parkinson, said the hotel is well located on a busy road network, and will provide a good opportunity to offer customers in the region a convenient choice for their packaged liquor needs.

The leasehold purchase locks Coles into a 15-year lease, with eight five-year options for the Wesfarmers-owned group.

Coles operates retail liquor brands Liquorland, Vintage Cellars and 1st Choice, and will almost certainly build a big-box outlet on the site. 

Source: The Shout - 21 July 2014