- Varsity Lakes and Pimpama Central sell for $38M and $22.2M respectively
- Both sold last Friday to private family investors as unconditional exchanges
- Showcases strong interstate investor, and Gold Coast corridor demand
Two Gold Coast pubs sold for a huge combined $60M on the same day last week, after successful campaigns by Burgess Rawson.
Strong Gold Coast pub market
Both of the pubs were turned over to new owners on Friday 19 November following expressions of interest campaigns.
The similarities don’t end there, with both assets being purchased by private family investors and the deals being closed on Friday as unconditional exchanges.
The Varsity Lakes Tavern, Dan Murphy’s and Fitness First in Burleigh Waters sold for $38 million, the more expensive property of the two.
The Pimpama Central Tavern was sold off the plan for $22.2 million.
Burgess Rawson Partner Billy Holderhead said the sales represented the strength of the Queensland pub market, with the properties located on opposite ends of the Gold Coast corridor.
“Pubs are certainly appealing to investors looking to channel frustrated capital into high performing asset classes with quality tenants.”
Billy Holderhead, Burgess Rawson Partner
“Opportunities like these are few and far between and bidders were
highly motivated,” said Mr Holderhead.
Varsity Lakes Tavern
The Varsity Lakes Tavern and adjoining Dan Murphy’s, in Burleigh Waters, is operated by ALH and was campaigned by Burgess Rawson in partnership with Savills Hotels.
The site is 17,000sqm with 128m of frontage to Southport Burleigh Road, and includes a long-term sub lease to Fitness First.
The buyer, a private Korean family in Melbourne, purchased the property sight unseen.
According to a representative, the family sought investment in the Victorian market for 12 months before pivoting to the Queensland market.
Director of Savills Hotel, Tony Bargwanna, said demand from interstate investors is strong 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,” Mr Bargwanna said.
Senior Executive at Savills Hotels Joseph Ganim said interest was wide and varied, unrestricted to private investors.
“Strong competition was received from some of Australia’s largest Institutions and fund managers.
“Several bids, including the successful offer, were made in the form of signed, unconditional contracts, highlighting the level of urgency in the market,” said Mr Ganim.
Pimpama Central Tavern
The Pimpama Central Tavern, located at the northern end of the Gold Coast, is due for completion mid next year. The tavern was sold to a private family investor, who purchased the site off-the-plan.
The tavern is being developed and built by the ADCO group and has a large frontage on Dixon Drive. The 7,862sqm site features a drive-thru bottle shop, tenanted by the Good Times Pub Group.
Richard Carmont, ADCO’s Development Director, said the tavern is located in one of the state’s fastest growing region which made it a prime 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,” Mr Carmont said.
“Importantly, it’s a great asset and will be well received by the local community area when it opens next year.”
Richard Carmont, ADCO’s Development Director
The tavern’s expressions of interest campaign was jointly lead by Glenn Conridge, Partner at Burgess Rawson and Pat Kelly, Principal of Kelly & Co Property.
Mr Conridge said the campaign drew interest from both national and international investors.
“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.
“This is an excellent outcome for an exceptional investment opportunity and sets a new bar for the northern end of the Gold Coast,” Mr Conridge concluded.