Unusual loss for Brisbane tavern sale in a market running hot

The Redcliffe Tavern and First Choice Liquor Superstore in Brisbane's north have sold for $14.5 million, half a million less than the owners paid for it.

The group of investors, headed by former Yellow Brick Road owner David Carr, paid $15 million for the premises in March 2016, making the loss on the recent sale an anomaly in a pub market that is running hot.

The tavern, which has a yield of about 7.25 per cent, was acquired by Anthony and Julian Vedelago's Wuvulu Property Investments Pty. The new owners will be hoping that they have skipped the back luck and will benefit in the same way as the previous owner, Somerset Properties, who made a 30 per cent capital gain on the same property in less than two years, after buying it from Alceon for $11.5 million in August 2014.

Industry sources have suggested that the sale, which was considered more of a retail offering than a pub asset, was impacted by uncertainty around the Coles business model in Queensland.

Sheridan Randall, 10^th May 2019