By Clyde Mooney
After 161 years in business, South Australia’s oldest known family of pub landlords has decided to pull stumps and sell its portfolio of 17 hotels in the Adelaide Hills.
In perhaps the biggest pub real estate offer in South Australian history, J&AG Johnston Ltd is seeking to free up capital to divest in other interests.
"The investment properties have served the company’s [60] stakeholders well, but following a major strategic review, our shareholders decided it is time to offer these properties for sale to enable their funds to be invested in other ventures," said company chairman, Mark O’Leary.
"This is part of the evolution of long-term family investment and as such, the future lies before us. We wish those who secure our properties well."
As well as the 17 hotels, the portfolio includes the nearby Balhannah Junction Shopping Centre and a number of other retail and residential holdings. [continues below]
J&AG Johnston's Callington Hotel
The sales represent attractive opportunities for the smaller investor in the Adelaide Hills, Lower Murray and Fleurieu areas, which typically offer a limited number of quality, well-leased investment properties.
The venues are being offered individually or in one line, with the total rent across the portfolio currently in excess of $2m per annum and all venues tenanted except the Callington Hotel.
The listings will be managed by agents Jones Lang LaSalle (JLL) and Steele & Associates Hotel Brokers, with expressions of interest closing Wednesday, September 12.
"This high profile and attractive portfolio is expected to generate strong interest from local and interstate investors, superannuation funds and potential owner-occupiers, who recognise the longer term value in the businesses as well as the real estate," says Roger Klem, director investment sales, Jones Lang LaSalle.
For these and other pubs currently on the market, check TheShout’s new Pub Sales page.
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