Ingleburn Hotel could generate massive windfall

Sydney’s action-packed pub and hotel market is set to be fuelled further as the Ingleburn Hotel is put up for sale for the first time in 60 years.

And the property could generate a significant windfall in the medium term for investors prepared to take the plunge, agents say.

With the hotel’s lease expiring in 2025, JLL’s John Musca says comparable sales show it could be worth at least $40 million at that point – potentially a $10 million uplift on its current value.

Commercial Insights: Subscribe to receive the latest news and updates

“There is a real opportunity to improve the yield from 3% to around 10% and increase return on equity from 9% to 28% in the short term at the expiry of the tenancy,” Musca says.

“There is the opportunity to restaple the asset within a six-year investment window. With the current lease expiring in 2025 it provides the option to sell a new lease or enable a new owner to take control of operations.”

The Ingleburn Hotel has large indoor and outdoor dining areas.

Located at the heart of Ingleburn’s shopping centre, an hour from the Sydney CBD, the Ingleburn Hotel features a modern bar, plus indoor and outdoor dining with three outdoor areas. It has 12 accommodation rooms, along with a drive-through bottle shop and an additional 23 parking spaces.

Critically for investors, it also has 27 lessor-owned gaming entitlements and permits and ranks among the top 80 gaming venues in NSW.

JLL estimates it delivers in excess of $3 million annually in net gaming profit, when benchmarked against similarly ranked Sydney gaming hotels.

The Ingleburn Hotel sits on a 2239sqm site that has attractive B4 mixed-use zoning and has the potential to be developed in the future.

It will be auctioned at Cooley’s Auction House on Thursday, November 14.