ALH sell a further two assets

Sydney, 23 August 2012 - Australian Leisure and Hospitality (ALH Group) has sold a further two hotels for a combined total of AU$16.625 million as part of its latest sale and leaseback campaign.

The Club Tavern & BWS liquor outlet in Caboolture ($7.5 million) and the Benowa Tavern on the Gold Coast ($9.125 million) have both changed hands through joint agents CBRE Hotels and Burgess Rawson.

The sales are the latest in a recent round of ALH sale and leasebacks, with The Jewells Tavern and Mattara Hotel in Newcastle, New South Wales, sold for $5.82 million and $5.253 million respectively, and the Granada Hotel in Berriedale, Tasmania selling for $3.30 million under the hammer.

CBRE Hotels Director Joel Fisher said all five assets were sold on yields ranging from 7.5% to 8%, which highlighted the strength of the ALH covenant and the demand for this style of asset in the current low interest rate environment.

“The sale of over $31 million worth of ALH assets again highlights the confidence the market has in the ALH covenant and confirms the group’s standing as the premier operator in the sector,” Mr Fisher said.

Burgess Rawson Director Billy Holderhead added; “The sale campaign generated significant national interest in the portfolio, leading to the sale of three properties under the hammer and a further two post auction. We had a broad spectrum of buyers enquiring on the assets, ranging from private investors across all Australian states, established publicans and international hedge funds.”

Mr Fisher said the $9.125 million sale of the Benowa Tavern had been completed last week to a Sydney-based private investor who had been keen to add to his commercial property portfolio.

Benowa Tavern is a substantial single level hotel located on Queensland’s Gold Coast with a large drive through BWS bottle shop, spacious bistro, public bar and sports bar. The asset was sold with a lease in place to ALH for an initial 20 years. The hotel is well located just 4km from the centre of Surfers Paradise.

The Club Tavern was purchased by a Victorian-based private investor for $7.5 million.

The tavern is located at Caboolture, 41km north of Brisbane. Constructed in 2000, it includes a building area of 1,445sqm on a strategically located 4,627sqm site which is directly opposite the railway station, McDonalds, Moreton Bay Council Chambers and the recently completed $22 million Queensland Government Cultural Centre.

The hotel features a sports bar with pub TAB, gaming room, bistro, children’s play room and alfresco dining areas. The hotel licence secured ALH rights to two detached bottle shops off site.

ALH Group is Australia’s largest and most successful hotel operator, and is 75% owned by Woolworths and 25% owned by the Bruce Mathieson group. ALH operate 321 venues around the country.

All five hotels sold offered secure long term leases, with initial terms of 20 years to the ALH Group.

CBRE Hotels Manager, Glenn Price added that the two most recent sales in Queensland highlighted the market’s appetite for good quality freehold investment hotels.

Mr Price added that in addition to these two sales, he had another two assets, which do not form part of the ALH offering currently under agreement, which he hoped to complete by the end of this quarter.

About CBRE Group, Inc.

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 firm (in terms of 2011 revenue).  The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 Web site at