Cheeky $6m expected for WA brewery

Western Australia’s premier Margaret River tourist mecca is offering a cheeky property investment for an astute buyer.

Located three hours south of Perth, the property at 4259 Caves Rd, Wilyabrup spans more than 14ha of prime land, including a farmhouse, the Cheeky Monkey Brewery and Cidery, restaurant and Ferngrove Vineyards cellar door.

Set on the elevated northern end of the lot and overlooking the cabernet sauvignon vines is the expansive five-bedroom, two-bathroom homestead, affectionately known as Burton Farmhouse.

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Constructed from cedar wood over a single level, the home offers opportunities as a country residence, holiday getaway or, in its current form, as short-stay accommodation. The brewery, restaurant and cellar door have long-term tenancy arrangements in place.

Owner Murray Burton, who purchased the property seven years ago, says the property was initially mooted as a cellar door to promote Ferngrove’s Killerby label, but after further consideration his family decided to establish the brewery, which his son now runs.

Burton Farmhouse is also part of the large property.

“I set up Ferngrove Vineyards back in 1998 in Frankland River but we wanted a site in Margaret River so we looked around and found that particular site.

“We wanted to go down the path of establishing a cellar door but had to think a little bit wider than just a cellar door, so that’s where the brewery came in,” Burton says.

Burton, who is retiring from his accounting practice in two months, says there is excellent potential for more short-stay accommodation and tourist attractions on the property.

“If we were to continue to own the property, I think we would develop that aspect more. It’s quite a lucrative area, there’s plenty of land that is zoned appropriately and there is a shortage of good accommodation in the area.”

The property offers a rental income of $445,000 a year.

Selling agent Phil Melville, from CBRE Perth, says the property would make a solid investment for someone seeking a change of pace in the south-west.

“It’s in a fabulous part of Margaret River on Caves Road, which is the main tourist strip leading in to the town and it’s only a short distance from the coast.

“This is an attractive investment proposition for investors keen to secure an asset in the renowned Margaret River region with the option of being able to live in the homestead,” Melville says.

The leased brewery, cellar door, vineyard and homestead return a rental income of $445,000 a year. The land is zoned for viticulture and tourism.

Melville is taking offers on the property, which is expected to fetch at least $6 million.