Perth, 7 April 2014 – Coles has sold two hotel investments in Queensland and Western Australia for a combined total of $13.22 million, after a hotly contested auction attracted strong buyer interest from both local and offshore investors.
The Old Bundy Tavern in Bundaberg, Queensland, was purchased for $7.7 million by a Brisbane-based family – a sale representing a yield of 8.18%. A Sydney-based doctor acquired the Victoria Park Hotel in Perth for $5.525 million – equalling a yield of 5.79%.
CBRE’s Joel Fisher, Glenn Price and Ryan McGinnity steered the sales campaign in conjunction with Billy Holderhead of Burgess Rawson.
Mr Fisher said the two properties were eagerly contested by buyers in bidding rooms in Melbourne, Brisbane, Sydney and Perth.
The Old Bundy Tavern and First Choice Liquor outlet is securely leased to Liquorland – the country’s second largest hotel operator – for a 15-year term with five 10-year options.
The 2,100sqm refurbished hotel is positioned on a 3,380sqm site and features an 886sqm freestanding First Choice Liquor store. The hotel includes four bars, a large bistro, gaming lounge with 30 machines, function room and onsite parking for 28 cars.
The Victoria Park Hotel, which was also sold with a 15-year lease to Liquorland, features four bars, a function centre, underground cellar, drive-through bottle shop and alfresco area.
The transactions follow the successful sale of a Coles hotel portfolio last year, which included the Royal English Hotel in Nundah, the Currimundi Hotel on the Sunshine Coast and the Taylors Hotel in Mackay.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.