Vlandis Group have raised the bar for pub sales prices in 2017.
The Coolibah Hotel, in the western Sydney suburb of Merrylands, has been sold by the family-owned Vlandis Group in an off-market deal. Andrew Jolliffe, Ray White Hotels’ Asia Pacific director, who negotiated the deal, would not be drawn on the price of the sale, only stating that it was the highest freehold going concern sale achieved nationally to date in 2017. Market sources suggest it was $40 million.
The recently renovated hotel sits on a 8500sqm parcel of land, and houses a few bars and a bistro, plus a TAB gaming room and bottle-shop. After investing heavily in the venue, Jolliffe says the owners identified the conditions of the current market as a good time to divest the venue.
“We’ve spoken openly, regularly and confidently in the past about the emergence of the Super A-Grade hotel category, and the applicable yields associated with irreplaceable hospitality assets such as the Coolibah Hotel; and the off-market transaction we have managed on behalf of our client is further and very clear illustration of the strength and depth of the market in this category sub-set”.
While the identity of the purchaser of Coolibah Hotel has not been revealed, Jolliffe has concede that it is another well established hotel group.
“The profile of the purchaser, much like our vendor, is one of an established and very well respected hotel group.
“The market has been patently well supported by sophisticated on and off-shore investor groups, and we feel this trend will continue; however it is most reassuring to all stakeholders in the space when the considered view of vastly experienced hoteliers manifests itself in such a deliberate statement as has been made regarding the acquisition of this irreplaceable hotel.”
In other news on the pub, rumours abound that Moelis has reignited their interest in the Redcape portfolio, and is readying a $700 million offer for the groups 26 pubs across New South Wales and Queensland. TheShout has contacted Redcape for comment.