Pub With No Peer Sold

More than $26m worth of Queensland assets were sold under the hammer or before auction including a renowned Brisbane student pub that attracted a wave of interest from sentimental buyers.

Eight Queensland properties were sold in Burgess Rawson’s latest portfolio auction, that spanned over two weeks because of the Covid-19 lockdowns, with a Gold Coast-based family syndicate paying $14.05m for the heritage-listed Royal Exchange Hotel.

Burgess Rawson’s Glenn Conridge said the ALE Property Group owned hotel at 10 High St, Toowong, sold well above the book value of $11.3m in a deal that realised a 4.01 per cent yield.

“It’s not only iconic in Brisbane but it’s incredible to note how many people have stories from their uni days of being drunk at the RE Hotel,” he said.

“So many people had this emotional attachment to the RE in a similar way they have to the Breakfast Creek Hotel.”

Listed tenant Endeavour Group has a 25-year triple net lease on the pub with four 10 year options taking the tenancy out to 2068.

Mr Conridge, who marketed the RE with HTL, said the 2453sq m site was zoned for a 10-storey development.

Some of the other deals in the auction included two in Hervey Bay — Infinite Pharmacy in Torquay sold for $1.312m (4.96% yield) and a Queensland Health tenanted property at Urraween for $1.841m (6.98%).

Also, a medical clinic in Maryborough sold for $1.3m (7.72%) a Bridgestone Flagstone for $2.65 (3.77%) and a Johns Lyng Group tenanted industrial property at Mount Louisa, in Townsviille, for $1.150m (6.5%).

Mr Conridge said “essential services” properties continued to find strong support at the auctions with health-related properties being popular.

“Everyone is focused on what’s bullet proof and what’s safe,” he said. “What’s proven to be safe during the madness over the past 18 months are essential services. They’re kicking along and they don’t have tenants seeking rent relief.”