Skip Ribbon Commands
Skip to main content

News release

Brisbane

Investors look north to Queensland hotels


​​Brisbane, 11 November 2013 - The Queensland pub investment market has experienced a strong resurgence in 2013, one that is expected to continue into 2014. 

 
The first half of the year saw a number of well-publicised receivership sales finalised, including the Lost City Tavern in Coomera to Redcape Group. Mr Paul Fraser, Vice President, Pub Investment Sales, Hotels & Hospitality Group said “This transaction signalled Redcape Group’s return to the market after restapling and restructuring, returning the attention of other national pub groups to Queensland as a market on the cusp of return.”

 
The other notable first-time entry into the South East Queensland market was private equity-backed Riversdale Group whose investors include advertising mogul John Singleton, former Qantas boss Geoff Dixon and banker Mark Carnegie. The group acquired The Elephant Arms Hotel in Fortitude Valley from the Independent Pub Group for $27 million, one of the largest single freehold going concern transactions ever to take place in Queensland.  

 
This sale gave the group immediate scale in the region and set the stage for their second acquisition through Jones Lang LaSalle – the Exchange Hotel in Brisbane’s CBD for a record $35 million. Mr Fraser added “With a combined sale price of over $60 million, these two transactions sent a clear message to the market that confidence was returning to the sector.”

 
This year Jones Lang LaSalle has settled over $300 million worth of pub transactions, with a further circa $50 million worth of transactions currently under due diligence. 2014 is expected to be another strong transactional year, with buyers targeting quality, high cash flow freehold assets with diverse income streams and repositioning opportunities.