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News release

Perth

Oasis opportunity in the heart of the Pilbara

JLL appointed to manage public tender for Newman’s ‘pub-without-peer’


Newman's landmark Newman Hotel in Western Australia's Pilbara mining hub region is to be offered for sale through a public tender process by JLL on behalf of Receivers and Managers, KordaMentha.

The recently refurbished establishment atop a substantial 2.16ha corner site in the town centre is being offered to the market as a freehold going concern by JLL's Hotels and Hospitality Group's National Director - Investment Sales, John Musca and Vice President - Investment Sales, Mathew George, and Director - Sales and Investments – WA, Phillip Fogliani.

Located in the heart of Western Australia's Pilbara region, the property features three independent food and beverage outlets, three commercial kitchens, a beer garden, Newman's only fully serviced TAB, over 200 accommodation rooms and extensive cool rooms and storage facilities.

"The hotel, which is virtually without peer and has undergone extensive renovations and expansion in recent years, offers an incoming owner significant tax depreciation benefits," said Mr George.

In addition to servicing the town's permanent population of 7000, the hotel enjoyed a turnover of more than $13 million in FY14-15 from rolling room contracts and a fly-in-fly-out workforce of 4000, and a roaring breakfast and crib trade servicing clients such as Lend Lease, BHP and private contractors," he said.

Mr Musca said that although the fortunes of Australia's resources sector had been dampened over recent years, the Newman Hotel was located at the heart of Australia's iron ore hub and home to BHP Billiton's Mt. Whaleback mine - the world's largest open cut iron ore mine.

"Added to this is its surrounding natural beauty including Karajini National Park and Marble Bar, along with rich Aboriginal arts and culture which attracts tourists from all over the world.

"Indicative of the region's appeal is the fact that more than 1.3 million international and domestic visitors travelled to the North West in 2015, recording over 13.4 million visitor nights," he said.

Mr Fogliani said the hotel was well positioned to benefit from the State Government's commitment to building a more sustainable community through a $40 million investment to revitalise the Newman town centre in addition to other infrastructure initiatives currently underway.

"BHP Billiton has also invested $30 million in the construction of a new shopping centre which is on track for completion later this year.

"This venue is a big scale operation with a strong trading history with further upside potential from the next wave of economic growth at the heart of which is BHP Billiton, one of the world's largest mining companies," Mr Fogliani said.

"The sale of the Newman Hotel is underpinned by high cash flows, a strong trading history and significant bolt-on attributes for substantial WA and national hoteliers. Furthermore, this is a genuinely committed vendor and an exceptional opportunity for the astute investor," Mr Musca added.