ALH’s Pacific Pines Hotel to go under the hammer
A landmark Queensland pub with a gold-plated lease to Australia’s largest pub and liquor operator is set to be the ultimate prize for hospitality investors when it is put to auction next month.
The Pacific Pines Tavern on the Gold Coast is for sale amid intense demand for premium pub assets, following a string of high-profile sales throughout 2021.
The renowned and booming corner pub, BWS outlet and drive-thru liquor operation at 8 Hotham Drive, Pacific Pines, features a coveted long-term lease to ALH – a majority owned subsidiary of ASX-listed Endeavour Drinks.
It will be put on the block at Burgess Rawson’s upcoming Investment Portfolio Auction on Wednesday, November 10 at 11am AEDT.
Secured on a renewed 15-year lease to 2034 with four 10-year options, the major hospitality offering includes an 8286sqm site with two bars, beer garden, gaming lounge and 88 parking spaces.
Crucially, the new owner will also inherit 40 highly sought-after poker machine entitlements.
Burgess Rawson’s Michael Gilbert, who is marketing the property with Glenn Conridge, said commercial properties with so many strong credentials were hard to find and keenly sought as buyers chase COVID-proof opportunities.
“The quality of the tenant and the length of the lease speak for themselves, and it’s also adjacent to a Woolworths-anchored shopping centre in a thriving, growing part of the Gold Coast,” Mr Gilbert said.
“It’s got a BWS with drive-thru, great outdoor areas, it’s family-orientated, incredibly busy and you’ve got the best tenant in the sector –there’s so much to love about it as an investment.”
In yet another drawcard for buyers, at the end of the current lease the property’s net lease structure will convert to a triple net lease, meaning the tenant will be responsible for all outgoings, including taxes, maintenance and insurance.
Mr Gilbert said the potential for growth within the Pacific Pines community was central to the property’s appeal.
“It’s a lovely part of the Gold Coast, without all of the tourist congestion, and increasing numbers of families are recognising that.”
The property currently returns $1,271,675 in annual rent.
Its listing follows the recent sale of the AHL-operated Royal Exchange Hotel at Toowong, which traded for more than $14 million on a tight 4.01% yield.
The Pacific Pines Tavern will be auctioned at Burgess Rawson’s Investment Portfolio Auction from 11amAEDT on Wednesday, November 10, at the Brisbane Hilton.
Burgess Rawson’s next auctions will be held in Sydney on 9 November; Brisbane on 10 November and Melbourne on 11 November with bidding available by phone, online or in person at the Sydney Opera House, The Hilton Brisbane and Crown Melbourne.