Gold Coast pub assets – The Varsity Lakes Tavern and the new Pimpama Central Tavern – have sold on the same day for a combined $60 million.

The two asset sales, located at opposite ends of the Gold Coast’s rapidly growing corridor, were sold via Expression of Interest campaigns to private family investors this week.

The Varsity Lakes Tavern in Burleigh Waters, which is operated by Endeavour Group subsidiary ALH, was sold for $38 million to a family based in Melbourne, sight unseen. The deal included a nearby Dan Murphy’s and Fitness First.

A representative of the buyer said the family had been looking for commercial investment properties in Victoria for 12 months before turning their sights to Queensland.

The pub, which was jointly marketed by Savills Hotels and Burgess Rawson, is on a 17,000sqm site has a high profile 128m frontage to Southport Burleigh Road and includes a long-term sub lease to Fitness & Lifestyle Group, trading as Fitness First.

Burgess Rawson partner Billy Holderhead said the sale demonstrated the underlying strength of Queensland’s pub market.

“Pubs are certainly appealing to investors looking to channel frustrated capital into high performing asset classes with quality tenants.

“Opportunities like these are few and far between and bidders were highly motivated.”

Savills Hotels director Tony Bargwanna noted that interstate investors are highly motivated in the Gold Coast market.

“Strong population and infrastructure growth on the Gold Coast, combined with the performance of pub assets in the region, is attracting high levels of interstate interest despite border closures.”

At the northern end of the Gold Coast, the Pimpama Central Tavern was sold off the plan to a family from Brisbane as an investment ahead of its completion in mid-2022 for $22.2 million.

The tavern is being developed and built by the ADCO Group. The 7,862sqm freehold site includes a drive-thru bottle shop and is fully leased to the Good Times Pub Group.

The sale of Pimpama Central Tavern was jointly marketed by Glenn Conridge, Partner at Burgess Rawson and Pat Kelly, Principal of Kelly & Co Property.

According to Burgess Rawson, the purchasers had been actively looking for a hotel asset for some time, and this hotel provided the ideal opportunity due to its location in a major growth corridor.

ADCO’s development director Richard Carmont said Pimpama Central Tavern’s location and long-term lease profile made it a compelling investment opportunity.

“With this development, we are delivering a well-designed tavern and bistro in a great location, with a rapidly growing population base and quality, long-term operator.

“Importantly, it’s a great asset and will be well received by the local community area when it opens next year.”

Conridge said the Expression of Interest campaign attracted interest from across the country and internationally.

“Pimpama Central Tavern presented a rare opportunity to invest in a brand new, architecturally designed tavern on a massive corner site in the heart of one of the fastest-growing regions in the country.”

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