ALE lists four hotels
ALE Property Group – the owner of Australia’s largest pub portfolio – has listed four investments.
In Queensland and Victoria, all are leased to Australian Leisure and Hospitality Group (ALH) for seven years.
With options the occupier can stay until 2068.
ALE has just had them valued – all up they were worth $21.2 million.
If all sell, the landlord would control about 82 freehold hotels.
Until it is spun off by June, ALH is owned by Endeavour Group, which is 85.4 per cent held by Woolworths, with the balance by Bruce Mathieson Group.
The ALE portfolio
Pelican Waters Tavern in Caloundra – Sunshine Coast’s southernmost town – is the priciest property in the ALE portfolio with a result of $7.6m (its December, 2020 valuation) expected.
The double storey venue with a balcony occupies an 8695 square metre site with a jetty and 65 car parks.
It returns annual rent of $438,956 (which is only $8000 more than it was returning when the vendor tried to divest it in 2009).
In Brisbane’s Kedron, ALE can expect $7.5m for the Edinburgh Castle Hotel (story continues below).
On a 4140 sqm Gympie Road block near a Coles and fast food restaurants, this investment contains a BWS bottle shop.
The total net yearly income is $340,470 – meaning of the four assets, this is expected to sell for the tightest yield (about 4.5 per cent).
ALE is also selling the nearby Kedron Park Hotel.
On 6008 sqm, it returns annual rent of $220,753 according to ALE.
It was just valued at $3.4m.
In Victoria, the c$2.7m Morwell Hotel, or Top Pub, is also on offer.
This site occupies 1.83 hectares and contains a 17-bedroom motel, as well as a sprawling pub and bottle shop.
Its income is $145,130 per year.
Burgess Rawson’s Michael Gilbert, Glen Conridge and Jamie Perlinger are the marketing agents.
All properties will be auctioned on March 31.
