Record yield for Brisbane’s Mansfield Tavern
A private investor has swooped on one of Brisbane’s last remaining large format hotels, the Mansfield Tavern, for almost $14 million, with the price reflecting a record yield.
The freehold interest of the pub in southeast Brisbane was sold by Neil Dickinson, who recently offloaded the Ivory Tavern at Tweed Heads.
The sale of the 20,830sqm land parcel was negotiated by CBRE Hotels’ Glenn Price, Daniel Dragicevich and Paul Fraser.
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In a reflection of the heat in the pub market, it sold in less than a week on a yield of about 5.8%. Notably, it was the first time a Coles-leased hotel has broken through the sub-6% mark nationally.
The hotel has a public bar, a gaming room with 31 machines, and an entertainment venue and a detached bistro. It has parking for about 227 vehicles.
It’s another example of publicans seeing intrinsic value in Queensland as a result of the increasingly bullish market conditions in Sydney
The property is leased to Wesfarmers subsidiary, Liquorland, which has been in place for the past 20 years, with a further five-year option available.
Coles is the country’s second-largest hotel operator, with a portfolio of 98 hotels, and the sale is an important benchmark against rival ALH Group-leased hotels.
Price says the relatively short-term lease to Coles meant the property won interest not only from hotel investors, but also from developers and hotel operators keen to run a pub or capitalise on the site’s development upside.
While the identity of the purchaser has not been disclosed, Dragicevich confirmed the buyer was a private investor from NSW.
“This reflects the continued trend of southern-based capital heading north across the border,” he says.
“It’s another example of publicans seeing intrinsic value in Queensland as a result of the increasingly bullish market conditions in Sydney.”
This article originally appeared on www.theaustralian.com.au/property.