Just a week after announcing the sale of the Captain Cook Hotel to Fanatics owner Warren Liivngstone, and the Royal Hotel to world cup winning Wallaby Richard Harry, leading national brokerage agency HTL Property has listed for sale the prominent North Nowra Tavern on New South Wales South Coast.
HTL Property Agents Dan Dragicevich, Andrew Jolliffe and Sam Handy have been exclusively appointed to steer the sale process.
The North Nowra Tavern represents the fourth hotel to be placed on the market by the O’Donnell Group in what has been a strategic sell down of their pub assets following the passing of well-known Canberra-based hotelier Gary O’Donnell some 18 months ago. The hotel was purchased by O’Donnell and Sydney-based publican Mark Duggan in 2017.
The North Nowra Tavern is a large format coastal freehold strategically positioned next door to the North Nowra Shopping Centre, and within an exclusive trade catchment of 5,976* residents. The business generates in excess of ~$7.50 million in annual revenues across bar, bistro, gaming, wagering and retail liquor. The hotel features a 1:30am liquor licence with 25 gaming entitlements and was ranked #412 for the Dec-2019 quarter. There is a DA approval in place to significantly increase the size of the trading footprint and optimise the layout of the hotel.
The North Nowra Tavern is situated on an underutilised 6,019* sqm landholding with the sites zoning allowing for significant redevelopment potential and a broad range of permissible uses including neighbourhood shopping centres, medical centres and motel accommodation.
“Key Coastal and Regional centres along Australia’s East Coast have been heavily investigated and consequently actioned by numerous leading hospitality investors over the past 12 months” advised HTL Property’s National Pubs Director, Dan Dragicevich.
“The reality however, is that very few opportunities present the scale and future proofed revenue generation levers that the North Nowra Tavern does, and it is for this reason HTL’s buyer universe has reacted so positively towards the opportunity” added Dragicevich.
The sale comes as both the New South Wales and Federal Government invests a combined $2.4 billion in order to duplicate and upgrade the Princes Highway between Nowra and the Victorian border. This follows the recent completion of the Albion Park Rail bypass ($631 million) and the Berry to Bomaderry upgrade ($450 million) which has dramatically reduced traffic congestion and improved accessibility to the South Coast.
“Hard yielding, high barrier to entry property driven assets are attractive to investors and transcend asset class appetite. Consequently, they also provide investors with a welcomed ROE respite from what are increasingly financially languishing alternatives” concluded HTL Property Managing Director, Andrew Jolliffe.
This campaign follows an active week of sale announcements for HTL Property having sold the Captain Cook Hotel ($16 million). Quarryman’s Hotel ($11.25 million) and the freehold of the Gregory Hills Hotel ($40 million).
The North Nowra Tavern is being sold via a National Expression of Interest campaign closing Wednesday 15th April 2020 (if not sold prior).
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