Rich-listers line up to be next QLD pub baron
AUSTRALIA’S largest pub landlord is preparing to offload three of its iconic hotels in Queensland.
The waterfront Pelican Waters Tavern on the Sunshine Coast, and Kedron Park Hotel and Edinburgh Castle Hotel in Brisbane will go to auction next Wednesday.
Owned by ASX-listed ALE Property Group, the three pubs are leased to Australian Leisure and Hospitality Group (ALH), which is wholly owned by Endeavour Group, which in turn is majority owned by Woolworths.
Each one is being sold with leases in place until 2028, with an option to extend until 2068.
The Top Pub Hotel in regional Victoria, which is also owned by ALE, is also being sold, with all four hotels being marketed by commercial real estate firm, Burgess Rawson.
Agent Glenn Conridge said there was “strong interest” in all three pubs.
He said there was interest from overseas, interstate and local investors.
“Primarily, they are mostly high-net worth private investors,” he said.
“Others are seeing the size of the land and taking the long-term view in terms of future development of the sites.”
Mr Conridge said all three sites had “significant land holdings”, and 28 year leases with ALH and the option of a further four, 10 year lease opportunities.
“People are comfortable with the ALH brand, which is 75 per cent owned by Woolworths, so that’s an attractive quality for investors,” he said.
“I expect all three will sell.”
The auction will be held at 10.30am on March 31 at Crown Casino in Melbourne, with registered bidders also able to bid from Burgess Rawson offices in their nearest capital city, by phone or via the online auction app.