Coles puts final NSW leasehold up for sale
The Northlakes Tavern on the New South Wales Central Coast, which is the last remaining Coles-operated hotel in the state, is being offered for sale.
The hotel, located at Charmhaven, is adjacent to a Coles-anchored shopping centre and offers an initial 15-year lease term expiring in 2027. There are eight further five-year options available; the hotel licence and 24 gaming machine authorities are also included in the sale.
CBRE’s Daniel Dragicevich and Ben McDonald have been appointed to manage the sale, and Dragicevich described it as an outstanding leasehold opportunity in an extremely attractive coastal growth location.
“The Northlakes Tavern is the only Coles’ operated venue remaining in NSW and we expect its sale will attract significant investor interest from astute operators that recognise the rarity of such an offering in a tightly held enclave of the market,” Dragicevich said.
“Aside from the transparent revenue growth opportunity, the venue is extremely well positioned within an area of the NSW Central Coast earmarked for future mixed use development and, is virtually unopposed in terms of local hotel competition. The venue’s main road position adjacent to a shopping centre, 180 on-grade car parks and large format offering equate to a very compelling hotel investment proposition.”
McDonald added that the recent sale of multiple leasehold assets in NSW, where the license and gaming machine ownership were owned by the tenant, highlighted the strength of investor demand for the asset type.
“2017 alone saw the sale of venues such as the Collector Tavern in Parramatta and the Verandah Bar in the Sydney CBD – both of which attracted significant purchaser interest given the appeal of hard asset ownership as well as the high cash flow nature of a well operated, leasehold hotel,” he said.
Northlakes Tavern is being offered for sale via Expressions of Interest closing March 8.