Brisbane’s Acacia Ridge Hotel up for sale
Brisbane’s Acacia Ridge Hotel has been put for sale for about $35 million by Joel Fisher’s private Balmoral Hospitality, as the heat in the pub sector hits Queensland.
The move by Balmoral, co-owned and run by the industry veteran Fisher, comes after it picked up pubs including The Waterfront Tavern in Fraser’s $2bn Shell Cove development south of Wollongong, and the Peet Group’s greenfield site in Flagstone, southeast Queensland.
Balmoral is now selling the large format Acacia Ridge Hotel after picking it up for about $26m three years ago and undertaking a major overhaul.
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One of Queensland’s most sought-after hotel properties, it ranks consistently at the top end of the state’s top 10 gaming hotels list.
The Acacia Ridge Hotel has 45 gaming machines and a large format drive-through bottle shop, multiple bars and conference facilities, as well as a 34-room accommodation centre.
HTL Property’s Glenn Price, Andrew Jolliffe and Dan Dragicevich are handling the sale.
“Queensland continues to operate in an environment with a clear scarcity of supply for top gaming assets, due largely to their tightly-held nature, and amplified by the market share of large corporate and private groups holding an enviable portion of key assets across the state,” Price says.
With the Reserve Bank’s latest decision to further cut the cash rate by 25 basis points to 0.75%, some financial institutions are offering loans at just 2.5%, creating a gap to current acquisition yields, Jolliffe says.
Since acquiring the hotel, the Sydney-based vehicle that owns the property has completed a $2.5 million upgrade and the property’s turnover now tops $13.5 million.
Interstate hoteliers, as well as property developers focused on the mixed and alternative use opportunities on the 18,450sqm corner block, are expected to chase the property.
This article originally appeared on www.theaustralian.com.au/property.
