Darwin’s Parap Tavern bought for $19.7 million
A Charter Hall managed partnership, Long WALE Investment Partnership, has acquired the Parap Tavern in Darwin for $19.7m, in a deal brokered by HTL Property.
The Parap Tavern is a single storey, purpose built tavern with an adjoining drive through BWS bottleshop outlet. ALH Group, part of Endeavour Drinks and the current operator of the tavern, has agreed to a new 15-year triple net lease. The property has been a regular top 10 state ranked gaming hotel, and is known fondly for its high quality food, beverage and retail liquor business.
Charter Hall Managing Director and Group CEO, Mr David Harrison said “The acquisition of Parap Tavern is in line with the Partnership’s investment strategy of owning triple net, long WALE, dominant ALH leased premises in growing markets.”
The sale was conducted by HTL’s Northern Australia specialists Brent McCarthy and Glenn Price, on behalf of the Dowling family who have owned the hotel for over 70 years.
“We’ve been fortunate to represent a number of significant top end generational family organisations in multiple deals covering both the Northern Territory, and Far North Queensland,” said McCarthy.
“Whether that be vending ALH themselves into assets, or in the case of our recent mandate with the Dowling family, running a process to identify an applicable suitor for an A grade property asset backed by a robust covenant such as that which ALH promotes.”
HTL Property Managing Director, Andrew Jolliffe, added: “The circa $20m sale price achieved and resultant yield at 5.65 per cent is material not only in the context of Northern Australia, but also when viewed through a national landscape lens.
“Accordingly, and following on from our two freehold investment sales earlier this year of Sydney’s Gregory Hills Hotel ($40m) and Brisbane’s Acacia Ridge Hotel ($20m) to listed property trust Hotel Property Investments, we are flagging the re-emergence of strong capital inflows towards investment grade hospitality assets of both traditional (pubs) and accommodation based hospitality genres.”