Pub giant to offload $20m worth of Qld ‘trophy’ pubs

Australia’s largest hotel landlord has put three of its southeast Queensland ‘trophy’ pubs on the market valued at almost $20m.

Australia’s largest pub landlord is selling three of its southeast Queensland hotels which have a combined book value of almost $20m.

ALE Property Group has put the Kedron Park Hotel and Edinburgh Castle Hotel in Brisbane’s inner north and Pelican Waters Tavern on the Sunshine Coast on the market either in one line or individually.

They will go to auction on March 31 through Burgess Rawson and are leased to Australia’s largest pub operator ALH which is on a 25-year term to 2028 plus four 10-year options to 2068.

The Kedron Park Hotel in Brisbane's inner north.

Burgess Rawson Queensland sales director Glenn Conridge said the properties presented one of the biggest market opportunities in recent years to secure prime southeast Queensland pubs.

“Single tenanted pubs on this scale that are on long leases to Australia’s largest pub operator ALH, don’t hit the market often,” he said.

“The Pelican Waters Tavern is a stunning waterfront pub and bistro while the Edinburgh Castle Hotel and Kedron Park Hotel offer significant high-profile main road frontages to busy Gympie and Lutwyche roads in Brisbane inner north.

“All three properties include an on-site BWS liquor store, sports bar, gaming room and bistro providing multiple revenue streams which underpin the strength of these investments.”

ASX-listed ALE owns the freehold of 86 pubs around Australia with a combine value of more than $1.2bn.

According to the ALE website Pelican Waters Hotel was valued at $7.6m, Edinburgh Castle Hotel for $7.5m and the Kedron Park Hotel for $3.4m

The Edinburgh Castle Hotel in Kedron in Brisbane's inner north.

The Pelican Waters Tavern at 38 Pelican Waters Boulevard, Caloundra is an 8695sq m waterfront property, the 4140sq m Edinburgh Castle Hotel is at 421 Gympie Road, Kedron and the Kedron Park Hotel at 693 Lutwyche Road, Kedron Park is on a 6008sq m site.

Mr Conridge said the pubs were in prime positions with significant land holdings.

“Securely leased to the largest hotel and bottle shop operators in Australia on 25 year leases, we expect these investments to be competitively sought after,” he said.

They will be auctioned alongside the famous “Top Pub” hotel in Morwell, in Victoria.

Originally published as Pub giant to offload $20m worth of Qld ‘trophy’ pubs