Fortitude Valley’s Beat Megaclub property on the market with price expectations of about $20m
Investors and developers are eyeing a massive inner-Brisbane site that has been home to the same nightclub for almost 40 years.
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Cashed up investors and developers are eyeing the buildings that host Brisbane’s best known gay nightclub which is on the market with expectations they could sell for around $20m.
The historic property at 669-683 Ann St, Fortitude Valley, has been The Beat Megaclub venue for 38 years.
However, the sale of the site is not expected to impact on the nightclub in the short to medium term.
Under one roof the 2000sq m property, on 1213sqm land, has 40m frontage to Brisbane entertainment hub and boasts eight bars, five nightclubs and three beer gardens.
Your Commercial’s Chris McLeod and Damon Lewis are selling the three titled property property on behalf of NSW-based and local owner — Holidah Pty Ltd and Caxton Street Agencies Pty Ltd.
According to CoreLogic apart from a shareholder buyout in 2015, 679-683 Ann St last changed hands in 2000 for $792,000 — well before it became part of The Beat Megaclub.
The property search also found that 677 Ann St, last sold in 2007 for $1.7m and 669 Ann St for $448,000 in 1999.
Mr McLeod said the expressions of interest campaign will target local and interstate investors and developers.
“It’s an investment but there is a long-term upside and it could be a development site down the track,” he said.
“But there’s a long-term tenant there so why wouldn’t you keep it going.”
The nightclub was founded by John Hannay who passed away in 2019. His nephew Ross Hannay became the director and manager of the club.
The club has a standard three year lease on the property with two three-year options.
Base rent is $836,000 a year and with yields for similar properties in the 4 per cent range market sources between it could sell for around $20m.
Mr McLeod said there has already been strong southern interest in the property.
“There has been quite a mix interest in the site from developers who are willing to hold for the next few years of the lease and investors due to the return on investment on the lease and the longevity of the current tenant,” he said.
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