ASX-listed HPI to pay $20 million for the freehold of the Acacia Ridge Hotel in Brisbane’s southern suburb

One of Queensland’s top gaming pubs has a new owner with the large southside site providing plenty of redevelopment options.

An aerial of the Acacia Ridge Hotel on Beaudesert Rd.

ONE of Queensland’s top gaming pubs has a new owner with an ASX-listed company snapping up the large format southside hotel.

Hotel Property Investments announced through the ASX it will pay $20 million for the freehold of the Acacia Ridge Hotel as part of a deal struck by HTL Property. HPI will also pay $40 million for Sydney’s Gregory Hills Hotel.

Retail development to kick off next year at the Acacia Ridge Hotel in Brisbane’s south

Sydney-based fund pays $26 million for the Acacia Ridge Hotel in one of the biggest pub deals of the year

HTL’s Glenn Price said the Acacia Ridge Hotel regularly featured in Queensland’s top 10 gaming hotels.

“The Acacia Ridge Hotel is firmly regarded as a top tier Queensland hospitality holding, and the price achieved is reflective of the high regard in which the market has valued the opportunity,” he said.

Both deals will settle next month.

The Acacia Ridge Hotel was owned by Balmoral Hospitality Group which last year bought the Peet Group’s greenfield tavern site in Flagstone, southeast Queensland.

It purchased the freehold/going concern of the Acacia Ridge Hotel three years ago for $26 million.

Acacia Ridge Hotel freehold sold for $20 million.

The hotel is leased to Monarch Hotel Management for 12 years with five 10-year options.

According to HPI’s ASX announcement the deal was struck on a 5.5 per cent yield.

The Acacia Ridge Hotel has 45 gaming machines and a large format drive-through bottle shop, multiple bars and conference facilities, as well as a 34-room accommodation centre.

It is on a 1.845ha corner site with redevelopment upside.

HTL property director Andrew Jolliffe said the national hotel market enjoyed a record year in 2019 and he believed this year was on track to surpass the previous levels.

“Close to $1.5 billion worth of transactions were facilitated last year, and our firm has closed $200 million worth of sales nationally well inside the first two months of the calendar year alone, in what is traditionally considered the more modest of the four trading quarters,” he said.