Gallagher Hotels takes over Meadowbrook pub
Well-known NSW hotel operator Gallagher Hotels is expanding its market. It is now moving beyond New South Wales.
Gallagher Hotels already has an expansive footprint. Its assets across NSW include PJ Gallagher’s Irish Pubs, Mr G’s, the Terrigal Hotel, the Union Hotel, the Royal Hotel Ryde, PJ’s Criterion, PJ’s Enfield and the Hunters Hill Hotel.
Now it’s expanding into Queensland. It has paid $6 million for the 39 years remaining on the lease of one of southeast Queensland’s largest cash flow pubs, the Meadowbrook Hotel.
CBRE Hotels’ Paul Fraser on behalf of Pelathon Management Group was the person who handled the sale.
“This is a prime example of a high-profile Sydney publican looking at opportunities north of the boarder, where capitalisation rates are substantially softer than their counterparts in NSW,” Mr Fraser told the Courier Mail.
He said it had attracted a lot of interest because of its strategic location.
“It’s prominently located in Meadowbrook’s commercial centre, with trade underpinned by infrastructure such as Logan Hospital, the Logan campus for Griffith University, Meadowbrook Plaza and a new Woolworths anchored shopping centre,” he told the Courier Mail.
“This played a significant part in the high level of interest we received on this asset.”
The pub is located on a 5934 square metre site on the corner of Loganlea Rd and Logandowns Drive, in Logan south of Brisbane.
And the big driver of interest is its earnings capacity.
The pub’s bars, alfresco dining restaurant, accommodation, 40 gaming machines and a drive through bottle shop generate much of the cash flow. The money sources are diverse and spread across the asset.
It’s been a busy time for CBRE Hotels.
Right now, it is also marketing another leasehold asset, the Criterion Tavern.
Pelathon Management Group managing director Jaz Mooney was enthusiastic about the sale.
“We wish Paddy and the team of Gallagher Hotels best of luck with this great hotel,”
Mooney told the Courier Mail.
Leon Gettler, 27th August 2018
