Charter Hall’s pub acquisition spree continues with its purchase of an ALH-leased Queensland hotel for $6.6m.
The listed fund manager has acquired the Imperial Hotel, which is located in the CBD of Beenleigh, 35 kilometres south of Brisbane, for $6.618 million.
The news follows hot on the heels of its $1.7bn joint takeover bid for ALE Property Group – which owns 78 pub freeholds also leased by ALH – with superannuation company Hostplus.
The Imperial Hotel is situated on a 1,834sq m site and has a two-level hotel complex featuring a main bar, a sports and Keno bar, a gaming room and a drive-through BWS bottle shop.
The off-market sale achieved a 4.88 per cent yield for the hotel, according to Leon Alaban and Michael Harcourt of Savills who brokered the deal.
The investment is underpinned by a long term 20-year net lease to ALH until October 2032 with options to 2082.
“The sale illustrated the massive ongoing demand for single tenant investments leased to blue-chip, listed operators such as ALH Group,” Alaban said.
Harcourt said, “The property offered long term lease security and a quality covenant, which are key investment ingredients for both institutional and private investors.”