NSW investor snaps up the Mansfield Tavern in Brisbane in an off market campaign that attracted developers and hotel operators

THE sale of one of Brisbane’s last remaining ‘large format’ hotels – well known as both a live and fight venue – has sold in quick time for almost $14 million.

HOTLY CONTESTED: A NSW investor buys the Mansfield Tavern.

THE sale of one of Brisbane’s last remaining ‘large format’ hotels has sold in quick time and smashed the sub 6 per cent yield barrier.

A private investor from NSW is believed to have paid almost $14 million for the Mansfield Tavern and First Choice Liquor outlet in Brisbane’s south.

It is leased to Wesfarmers subsidiary, Liquorland (Qld) which has been operating the pub for the past 20 years with a further five-year option available for execution later this year.

CARE Hotels’s Glenn Price, who struck the deal with Daniel Dragicevich and Paul Fraser, said they knew the asset would be “hotly contested” because of its underlying fundamentals.

“The relatively short term lease to Coles meant that the property attracted interest not only from hotel investors but also developers and hotel operators given the potential reversionary value of the business and the site’s development upside,” he said.

In a sign of the strength of the freehold investment hotel sector, the sale of the property was transacted in less than a week at a yield of about 5.8 per cent.

This is the first time the yield on a Coles leased hotel has broken through the sub 6 per cent mark nationally.

The hotel is on a 20,830sq m of land with two arterial road frontages and the hotel incorporates a public bar, gaming room with 31 gaming machines, large entertainment venue and a detached function room/bistro.

There is on site parking for approximately 227 vehicles.

Mr Dragicevich confirmed that the buyer was a private investor from NSW.

“This reflects the continued trend of southern based capital heading north across the border, ”he said.

“It’s another example of publicans seeing intrinsic value in Queensland as a result of the increasingly bullish market conditions in Sydney.