Prime coastal assets in demand: JLL

By Triana O'Keefe, editor – Australian Hotelier

A NSW Central Coast pub has been listed for sale as real estate agents express confidence in the coastal market.

JLL Hotels & Hospitality Group is acting for Newhaven Hotels on the sale of the Bateau Bay Hotel.

John Musca and Sam Handy will steer the expressions of interest campaign, which closes Thursday March 26.

Musca said: “With over 56 Sydney pubs sold in 2014, the availability of A grade metropolitan pub stock is rapidly diminishing with operators now seeking quality coastal pub assets over B and C grade metropolitan assets."

"The diminishing A grade pubs supply has led to some yield compression and rather than acquire a second grade pub, buyers are focusing on prime coastal pub assets within growing centres. These pubs are often in excellent locations, have more scope for upside, boast larger trading footprints and offer better value," Musca said.

Situated on a 27,000sqm site on the Central Coast Highway, the pub is tipped to attract interest from a broad spectrum of publicans, developers and land bankers.

The hotel is located in close proximity to Charter Hall's Bateau Bay Square which boasts anchor tenants such as Coles, Woolworths and Aldi. With Bateau Bay's population forecast to triple over the next 15 years, planning is already underway to develop the two large sites adjacent to this centre, which will provide for additional residential, commercial, retail and recreational use.

"The demographic plus the growth and demand drivers combined with the site's size and location present an absolutely compelling opportunity for a developer seeking a land banking opportunity with an exceptional holding income," Musca said.

JLL's Sam Handy said: “The hotel currently generates weekly revenues in excess of $107,000 but with such a large trading footprint and limited surrounding competition there is obvious and significant further upside to be realised.”