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News release


Pub transaction volumes boost as investor confidence increases

Positive turnaround for Australia’s pub investment market

The Australian pub sector regained confidence in 2013 with transaction volumes totalling $775 million at year end, an increase of 50% on 2012 volumes, the highest it has been since 2011.

According to JLL's latest Pub Investment News, investment activity was concentrated around the $10-$20 million bracket with 24 assets exchanging in this group, almost five times the amount of that in 2012, reaching a combined total volume of $349 million. Sales were receivership dominated in the first half of the year, however there was a notable shift towards aggressive expansion in the latter half of 2013, as investor confidence strengthened.

Majority of sales were recorded in New South Wales ($378 million), the state dominating transaction activity in the first half of the year. The average deal size increased to $7 million and 54 assets exchanged hands by year end. Notable sales include the Palms Hotel, Chullora, the Crown Hotel in Surry Hills and the King Street Brewhouse, located on King Street Wharf, Sydney.

The Queensland pub investment market witnessed greater deal flow in the second half of 2013 following on from a softer, receivership sale dominated, first half of the year. The state had the second highest transaction volume ($215 million) for the year, with 22 pub sales, however recorded the highest average deal size at $10.2 million. Notable sales included The Exchange Hotel, Brisbane, the Elephant Arms in the Fortitude Valley and the Jindalee Hotel, Jindalee.

Compared to 2012, the Victorian pub investment market increased by 39%, to $144 million. Steady activity was recorded across all sectors, however a notable increase in regional sales and that of older inner suburban food and beverage pubs. Changes to the Victorian gaming tax structures and pending decision around gaming entitlement security continues to hamper further deal flow. Notable sales include The Town Hall Hotel in Richmond, The Bridge in South Wharf and Brunswick's The Penny Black.