- The 114-year-old Leopold Hotel and the accompanying big format First Choice Liquor Market have been sold to an NSW private investor
- The property, which has a net income of $1,074,585, was offered 100 per cent leased to Liquorland (QLD), with an initial yield of roughly 6.8 per cent
- JLL’s Chloe Mason says if vacant possession was obtainable, a local developer or publican would have likely jumped on the opportunity
- Another iconic Perth pub might follow suit, with the Bayswater Hotel on the market for the first time in 40 years
The 114-year-old Leopold Hotel and the accompanying big format First Choice Liquor Market have been sold to an NSW private investor amid border restrictions.
The hotel has been owned by the Buhagiar family for more than 28 years, during which time they owner-operated then later leased out the business.
The property, which has a net income of $1,074,585, was offered 100 per cent leased to Liquorland (QLD), a fully owned subsidiary of Coles Group, with an initial yield of roughly 6.8 per cent and an enhanced rate per square metre of land of nearly $2314, according to the transaction.
The transaction was negotiated by JLL’s Sean Flynn, Director of Sales and Investments, and Chloe Mason, Senior Executive of JLL’s Hotels & Hospitality Group, following a lively on-market sale process that generated a significant number of inquiries and several bids.
“We were pleased to be able to undertake the sale process for such an important client of JLL and having an opportunity to work on a rare large format liquor offering and combined pub within the same process was a bonus,” Mr Flynn said.
“We also believe that achieving what was effectively a blended yield of around 6.8% for a combined pub and large format liquor offering was a great outcome for the seller.”
Ms Mason said the demand for local pubs was growing, particularly on the back of an uplift in the industry.
“As expected, the sale process attracted substantial interest from publicans, investors and developers,” she said.
“If vacant possession was obtainable, I have no doubt this iconic pub would have fallen into the hands of one of WA’s competent pub operators or a local developer given its significant landholding of 6828sqm.”
Another iconic Perth pub might follow suit with the Bayswater Hotel on the market for the first time in 40 years, with the campaign being led by Mr Flynn and Ms Mason.
The Bayswater Hotel was built in 1898, having had only three freehold owners, with renovations most recently taking place in 2018.
Further development opportunities are available, with the site supporting a discretionary height limit of up to 18 storeys, located in the METRONET East Bayswater Redevelopment Scheme.