By Andrew Starke
North Queensland pubs owned by Oaks Hotels & Resorts founder and former CEO Brett Pointon have been listed for sale under instructions from receivers with strong buyer competition anticipated.
Receivers and managers, Guy Edwards, Darryl Kirk and Paul Kirk of PwC have appointed CBRE Hotels, represented by Craig Harley and Joel Fisher, as the selling agents for the Grand Hotel at Gladstone and The Australian Hotel in Townsville.
The hotels, which are part of Pointon's privately held property empire with Oaks Apartment Management as trustee for The BM Pointon Family Trust listed as the owners, are being offered for sale by closed tender, closing May 5, 2011 at 4pm.
Last Friday (March 11), Oaks Hotels & Resorts informed the Australian Stock Exchange that Pointon's employment contract as chief executive officer had been terminated.
A spokesperson for Pointon told the Gladstone Observer that a number of properties from Pointon's private portfolio had been placed in receivership.
“Assets of the four entities placed into receivership include a substantial shareholding in the Oaks Hotels and Resorts; the Grand Hotel, Gladstone; The Australian Hotel, Townsville; The Metropole Hotel, Townsville; and Hotel M also in Townsville,” he was quoted as saying.
Harley said the campaign was expected to attract strong interest, with both pubs offering ‘significant’ upside and future development potential.
“We’re expecting particularly strong buyer competition for the Grand, which is likely to be one of the most sought hotel offerings in Queensland, if not Australia, given the strong growth forecasts for Gladstone,” he said.
“The Port of Gladstone is on its way to becoming one of the world’s largest liquid natural gas (LNG) exporters with energy giant Santos having given the green light to its US$16 billion Gladstone LNG project and British group BG last year committing to the US$15 billion Curtis Island project.
“These developments will create thousands of jobs and drive considerable investor demand for real estate opportunities in the region.”
The Grand is situated on Goondoon Street in the heart of the Gladstone CBD.
It occupies a 3,900 square metre site which includes a large vacant allotment, allowing for future development.
The offering includes the hotel licence and 40 gaming machine authorities.
It incorporates a large bistro/restaurant, indoor and outdoor dining, public/sports bar lounge bar and beer garden, children’s playground and function centre.
Townsville’s Australian Hotel is also expected to generate buyer interest given its high profile location on the entertainment hub of Palmer Street.
The hotel is situated on a 4,554sqm site made up of five separate titles.
“We’re expecting interest from both hotel investors and developers, given the property’s blue ribbon location and significant development potential,” Harley said.
The property is being offered with a hotel licence and 18 gaming machine authorities.
It includes a detached bottle shop, garden bistro, large public bar, lounge bar, gaming room and beer garden.