By Andrew Starke
WA’s largest ever pub portfolio sale is gaining momentum with Compass Hotel Group assets being eyed by at least two major retailers, pub operators and private equity groups.
According to agents for the sale, Jones Lang LaSalle Hotels and CBRE, the portfolio is receiving extensive interest from a range of buyers.
These are believed to include Woolworths, through its ALH joint venture, and Wesfarmers.
The 12 freehold going-concern hotels and one leasehold bottle-shop comprise over 69,000 sqm of combined site area and are large suburban food, beverage and retail liquor venues strategically positioned throughout the Perth Metropolitan area and nearby Mandurah.
“There is much anticipation regarding the potential to secure what is recognized as the most significant on-premise and retail liquor share opportunity available in Australia, and in the most tightly held market in the country,” said John Musca, national director, Pub Investment Sales at Jones Lang LaSalle Hotels.
“WA has the highest barriers to entry of any jurisdiction nationally, with limited competition for hotels and a tremendous state growth story.
”As a result, these assets have been coveted for some time by a broad stable of groups awaiting this divestment program.”
For sale as a portfolio or individually, the 12 pubs have attracted interest from both groups seeking immediate market share and individual buyers attracted to site-specific assets.
Western Australian liquor licensing and State laws precludes pubs from offering ‘pokies’ and, unlike other states in Australia, there is limited competition for hotels from large licensed club premises.
The portfolio includes: The Carine Glades Tavern and The Greenwood Hotel as well as The Herdsman Lake Tavern, The Albion Hotel, The Kalamunda Hotel, The Gosnells Hotel, Lakers Hotel, The Princess Road Tavern, The Peninsula Hotel, The Peel Alehouse, The Brighton Hotel and The Belmont Hotel.
Under the instruction of the receivers and managers, Taylor Woodings, Expressions of Interest close on July 20, 2011.