Mahil Group has acquired the Royal Hotel Nundah at 1259 Sandgate Road in Brisbane prior to auction for $13,171,000, at a 5.26% yield.
CBRE’s Jack Morrison, Yosh Mendis & Paul Fraser undertook the national auction campaign, with Mahil Group represented by Jas Mahil.
The freehold inner-Brisbane asset sits on a 2,025sqm corner landholding with 87 metres of dual street frontage to Sandgate Road and Station Street and is occupied by Australian Venue Co under a net lease running to November 2028 with five further 10-year options extending to 2078.
Established in 1888, the hotel features a bistro, public bar, function rooms and 34 gaming machine authorities.
The property returns a net income of $692,178 per annum, with the tenant responsible for all outgoings including council rates, water rates, insurance and land tax as well as annual rent reviews.
Mr Mendis said the result reflected sustained investor appetite for strategically located metropolitan hospitality assets with institutional-grade tenant covenants.
Mr Fraser said the combination of a tightly held inner-Brisbane location, a generational lease structure and the significant intrinsic value of the gaming authorities drove strong competition. He added the result demonstrates that buyers are willing to compete hard for quality, and this asset had quality in spades.
Nundah sits approximately nine kilometres north of the Brisbane CBD, with the broader market underpinned by population growth and infrastructure investment ahead of the 2032 Olympic Games.
Mahil Group is a family-run business with accommodation and other commercial interests in Brisbane and the Gold Coast.
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