Investor makes 30 per cent on Redcliffe pub sale in less than 2 years
A private Melbourne property investor has made a 30 per cent gain in less than two years by selling the Redcliffe Tavern at Redcliffe, north of Brisbane, for $15 million.
The modern freestanding tavern and First Choice Liquor Superstore was bought in 2014 for $11.5 million on a yield of 7.27 per cent.
The 1464-square-metre property has now sold less than two years later on a yield of 6 per cent reflecting the thirst for properties with strong lease covenants.
The property is leased to Liquorland, the major liquor division of Wesfarmers' Coles Group, on a 20-year lease to 2029 with two further 10-year options.
"The quality of the lease covenant and the prominent location was an attractive combination for investors," Peter Tyson said, "this property provides long-term rental income security on a net lease, where the tenant is responsible for all ongoing outgoings."
The tavern was developed in 2009, and is set on 2498 square metres at 32 Anzac Avenue. It occupies a prime corner location, adjoining the Bluewater Square Shopping Centre, in central Redcliffe.
Jon Tyson said such well-positioned and well-leased investment opportunities are rarely offered to the market and, as such, are highly sought after by investors.
"This blue-chip lease covenant complements the high-profile corner positioning in the main commercial hub of Redcliffe, immediately adjoining the Woolworths-anchored Bluewater Square Shopping Centre and a large public car park," he said.