Moelis backs Nelson Meers in $40m purchase of Oasis on Beamish

​Sydney, 23 May 2015 Seasoned pub investor Nelson Meers has won the backing of investment bank Moelis & Co to buy another inner western Sydney gaming icon, the Oasis on Beamish, for about $40 million, in an off-market play orchestrated by CBRE and Knight Frank.

The bank’s involvement in the purchase of the top-performing pub in Campsie, about 13km southwest of the Sydney CBD, consolidates the entry of more ­institutional investors into the surging pub sector.

The purchase of the popular Oasis on Beamish adds to the pair’s holdings. They bought the Grand Hotel in Sydney’s Rockdale last year for about $24.5m and Mr Meers holds a major portfolio privately.

The Oasis on Beamish was acquired from interests associated with Graham Rissman and Peter Walker. The corner pub sports 30 gaming machines, making it one of the state’s top earners.

CBRE Director Dan Dragicevich said more entrants were targeting the hotel sector, as highlighted by this acquisition. “Lower interest rates and a stable legislative environment are underpinning buyer interest and translating to strong sales results, particularly in Sydney,” he said.

Knight Frank director Mike Wheatley said “there continues to be a strong appetite for AAA gaming-centric hotels with solid trading histories and good property fundamentals”.

The institutions that have come into the sector in the wake of the global financial crisis are buying with greater discipline than the aggregators during the property boom that relied heavily on debt. The new players see pubs as top class commercial assets as many have covenants to supermarkets or to wealthy ­operators.

However, they must compete against developers for pubs, as many are buying, particularly in Sydney, to build apartments on the sites.

Local residential developer Dyldam last month swooped on a landmark pub, The Bull & Bush, in Sydney’s Baulkham Hills, in a $50m deal also brokered by CBRE.

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 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 approximately 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 at www.cbre.com.