Brothers behind Pacific Pines Tavern put property to auction

The brothers who built a popular northern Gold Coast pub 18 years ago are set to cash in on buyer thirst when the watering hole goes up for auction.

BROTHERS who built the Pacific Pines Tavern 18 years ago have set out to capitalise on a buyer thirst for hotels by putting the property to auction.

Mermaid Beach residents Peter and Andrew Quinn lease the tavern to ALH, an arm of Woolworths spin-off the Endeavour Group, and it is earning it $1.27m a year.

ALH has a lease until 2034 and options allow it to stay behind the bar until 2074.

Glenn Conridge, of Burgess Rawson, yesterday said that in terms of tavern and hotel offerings, the Pacific Pines Tavern was a family pub and a “little bottler”.

He said the stature of the tenant and the length of the lease and options made the tavern a blue-chip one.

“Investors are looking for tenant security and you can’t get better than this tenant and this lease tenure.”

Pacific Pines Tavern is up for auction.

The pubs market is enjoying a record year, with sales at yields of less than 5 per cent and listed property funds entering the market.

Funds manager, the listed Charter Hall group has just bought the Imperial Tavern at Beenleigh on a 4.9 per cent yield.

The Pacific Pines property, at 8 Hotham Drive, is next to the Woolworths-anchored Pacific Pines Town centre and has 40 gaming machines, which are owned by the landlord.

The Quinn brothers own the tavern through company Hospitality and Leisure Holdings which built it on an 8286sq m site bought from Pacific Pines developer Stockland for $1.275m in 2002.

The Pacific Pines property has two bars, bistro dining area, a gaming lounge, outdoor terrace, children’s playground, and parking for 88 cars.

The tavern is to be auctioned in Brisbane on November 10.