Leonard Bongiovanni of MQ and Associates, in conjunction with Xavier Plunkett of HTL Property, have been exclusively appointed to offer the sale of the Freehold Passive Interest in the Grand Hotel, Armidale; via an Expressions of Interest campaign closing Thursday 9th December 2021.
The Freehold asset Vendor is Steve McEvoy who holds a stable of Freehold Passive Hotel investments on the Mid-North Coast of NSW. The Grand sits geographically out of McEvoy’s core portfolio, and funds from the sale will be redeployed into a property development play on the Coffs Coast.
The prominent brick Hotel features a public bar, bistro, gaming room, beer garden, car park with 22 car parks on title. The asset is situated upon 1667m2 of prime land located on the corner of Rusden Street and Ohio Street, with 56.1m* of street frontage. The Grand Hotel is strategically located 800m* from Armidale CBD, 400m* from Armidale’s industrial district: and only 200m* from Armidale Hospital.
The asset is currently producing $109,200* in annual rental revenue with increases to $151,800* by mid-2022.
“We expect strong interest in The Grand given the severe lack of quality passive investments on the market over the previous year. Further, with the current low cost of finance and the strong capital appreciation in the gaming entitlement market; we are confident of a timely sale” commented HTL Property’s Xavier Plunkett.
“We estimate the underlying asset value of the gaming machine entitlements and the land and buildings to be worth circa $3,000,000*; and our Vendor has price expectations around this mark” suggested MQ’s Leonard Bongiovanni.
“The asset will appeal to both private investors chasing passive income and capital appreciation with a tenant in place, as well as established hoteliers looking to secure future poker machine entitlement supply with a meaningful holding income” concluded Bongiovanni.
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