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

CORKS are popping as Queensland’s largest — and one of its most profitable — pubs changes hands.

STRONG INTEREST: The Acacia Ridge Hotel which sold for just about $26 million.
STRONG INTEREST: The Acacia Ridge Hotel which sold for just about $26 million.

CORKS are popping with Queensland’s largest and one of its most profitable pubs changing hands.

A Sydney-based fund paid about $26 million for the Acacia Ridge Hotel in Brisbane’s south west after a sales campaign that attracted both hoteliers and developers from around Australia.

Sydney publican Peter Calligeros, who bought the hotel for $16 million in 2014 with his business partner Stephen Farley, said he was happy with the result.

They had carried out a significant upgrade to the gaming offering and renovated the pub’s accommodation, increasing revenue.

Ray White’s Asia Pacific director Andrew Jolliffe, who struck the deal with CBRE Hotels Glenn Price, said the pub’s strong revenue stream was a major attraction.

But he said the strong sale price was also linked to the Acacia Ridge Hotel’s 1.8ha block on Beaudesert Rd.

“The response the strategic campaign generated enjoyed clear connection with astute hoteliers, as well as property developers who saw mixed and alternative use opportunities available in respect of the under-utilised aspects of the land holding,” Mr Jolliffe said.

“Interest from Queensland, Victorian and NSW investors was particularly strong, as well as from some of our key clients we have relationships with out of our Northern Territory office.”

The hotel has 45 gaming machines, a large format drive-through bottle shop, multiple bars and

conference facilities; as well as a 34- room accommodation centre and 230 car spaces.

The hotel has also benefited greatly from the expansion and intensification of surrounding residential suburbs including Sunny Bank, Sunny Bank Hills and the $600 million Cornerstone Living Master Plan development at Cooper Plains.

Mr Jolliffe said the national hotel market has been in overdrive over the past six months.

“The confluence of the historically low interest rate cycle, ready availability of senior debt, the low Australian dollar driving inbound revenues and the strength of weekly cash receipts at the point of sale, when collectively distilled, render the opportunity to acquire A grade hospitality property wholly compelling,” Mr Jolliffe said.

Original URL: https://www.couriermail.com.au/business/qld-business/sydneybased-fund-pays-26-million-for-the-acacia-ridge-hotel-in-one-of-the-biggest-pub-deals-of-the-year/news-story/6180e28e6ea540b093c3bdbbfb0ed657