Queensland pub sells for $9.4 million

The Blacks Beach Tavern in Mackay, Queensland has sold for $9.4 million to a resurgent pub group operating in the Bowen Coal Basin.

The sale to the Central Queensland Hotel Group (CQHG) was brokered by veteran agents Power Jeffrey and includes a sports bar with TAB, gaming lounge with 40 machines and seated dining for 260 patrons.

CQHG has been in operation for over 12 years, first purchasing the Blackwater Hotel back in 2000 and since acquiring the Jolly Collier in Dysart, Coal n Cattle in Moura and the Brolga in Tieri.

CQHG managing director, Anthony Fargas, a third-generation hotelier, said the company recognises the time is right to invest.

"With the state of the industry in Queensland, coupled with the effects of the [proposed] Wilkie reforms on gaming, we have not purchased a new venue since 2005.

"But things have certainly changed, and confidence is returning to the market. It is a good time to buy for those that have the ability to acquire new assets."

CQHG is enjoying high occupancy rates in the accommodation in all its venues, due to high demand from mining and contractor companies for employees working in the towns.

Power Jeffrey & Co has specialised in the sale and valuation of hotels throughout Queensland and northern NSW for the past 26 years.

Director Peter Power told TheShout: "We see a steady improvement in the market, supported by a low interest rate environment and a return to realistic price expectations."

Source: The Shout, 22 June 2012