I haven't got a bad word to say about this business. The property managers are so knowledgeable and willing to help. The business has all my properties and I just can't praise them enough. Montanna Long
The John Singleton, Geoff Dixon and Mark Carnegie-backed Australian Pub Fund has put The Elephant Hotel in inner Brisbane up for sale, part of $70 million of high-profile east coast freehold venues to hit the market this week.
Price expectations are understood to be around $20 million for the historic four-level Fortitude Valley venue, which offers four separate bars, a large outdoor beer garden and a gaming room with 42 machines.
The Elephant Hotel along with the Unity Hall Hotel in Sydney's Balmain are the final freehold divestments for what was once a fund holding 11 assets worth around $300 million.
APF director Matthew Beach said given low interest rates and a lack of quality stock on the market, investors in the fund felt the timing was right to sell the remaining pubs in the fund.
However, he said APF was committed to the sector with a second pub fund, backed by new investors, launched and holding as its first asset, the Lampton Park Hotel in Newcastle.
"We also still hold the leasehold for the Stock Exchange Hotel in Brisbane and manage three other Queensland venues.
"So we're looking to invest in new pubs for the second fund and manage pub's for third parties," Mr Beach said.
The Elephant Hotel is being marketed by CBRE’s Paul Fraser and Jack Morrison in conjunction with JLL’s Tom Gleeson and Nick Butler.
“The Brisbane near city market has been starved of genuine mixed use, value add opportunities in recent times, particularly those with the adaptability and flexibility offered by The Elephant Hotel,” Mr Morrison said.
Alongside the offering of the Elephant Hotel, Tim Gregg and Andrew Svencis have put another historic pub, North Adelaide's The Lion Hotel, up for sale for the first time in more than 20 years.
The $20 million offering includes an adjoining office block creating a potential development opportunity across 5000 square metres.
JLL’s Will Connolly and Roger Klem have been appointed to sell The Lion Hotel.
Mr Connolly said he expected interest in South Australia and nationally.
In Sydney's south west, the Walker family have decided to sell the Raby Tavern after 16 years of ownership.
Price expectations are understood to be more than $30 million.
The Raby Tavern includes 28 poker machine licenses as well as seperate retail tenancies ona 8000 square metre holding at 39 Spitfire Drive in Raby.
Selling agents Dan Dragicevich and Andrew Jolliffe from HTL Property said pubs offering pre-leveraged returns of 7 per cent or better were the most sought after at present.