High-profile hotel listed for sale as investors circle SEQ assets

20 April 2023

The freehold interest in Club Hotel Waterford has been listed for sale amid robust demand for long-leased South East Queensland hospitality assets.

The prominent Brisbane hotel is being offered with the benefit of a long-term, double-net lease to Liquorland Pty Ltd.

CBRE’s Paul Fraser, Joe Tynan and Michael Hedger have been exclusively appointed to steer the Expressions of Interest campaign for the Waterford asset, which includes a large format tavern with a main bar, sports bar, dining area and a designated gaming room with 45 gaming machines.

The tavern is operated by the KKR-owned Australian Venue Co. (AVC), one of the nation’s largest hospitality operators,

The asset also features a large First Choice Liquor Market operated by Coles Liquor as well as ample car parking on a high exposure, 1.1ha corner site.

“In the lead up to the 2032 Brisbane Olympic Games and with unprecedented infrastructure projects in the pipeline, we are seeing record levels of enquiry from investors nationally looking to gain a foothold in Brisbane’s hospitality industry,” CBRE’s Mr Fraser said.

“In the case of Club Hotel Waterford, the asset has approximately 9.5 years remaining on its long-term lease with a further three 10-year options upon expiry, running until 2063. The net lease also provides a strong rental of circa $1.43 million per annum with the tenant being responsible for 100% of the outgoings. The landlord is only responsible for structure works.”

Mr Tynan added, “This type of secure investment shares similar characteristics to a Bunnings asset, providing an annual fixed growth income structure with a Coles subsidiary as the tenant covenant. Given this style of property is seldom offered to the market, we expect robust interest from a wide range of investors.”

Club Hotel Waterford is located approximately 28km south-west of Brisbane on Loganlea Road in the city’s southern growth corridor.

It is positioned directly opposite a Coles-anchored shopping centre, which drives high traffic to the area,  and is close to Logan TAFE and Logan Hospital.