Vic gaming up for sale

Fresh into Victoria’s new gaming regulations an opportunity has arisen for outsiders to acquire a piece of the lucrative southern market.

The Victoria or ‘Vic’ Hotel freehold and business are up for sale as going concerns, and likely to attract significant interest from interstate investors.

It boasts good departmental revenue streams in gaming, bars, bistro and accommodation, with 40 EGMs and entitlements, seating dining for 100 and a forecast 69 per cent GP on the 2012 revenue of $4.14 million.

National hotel brokers Jones Lang LaSalle and Cropley Commercial are bringing the venue to market by Private Treaty. Speaking to TheShout JLL vice president - pub investment sales, Mathew George, cites the significance of the sale in the new environment.  

“For many years now the Victorian gaming hotel industry has been considered a closed shop for people outside of the garden state.

“Victorian gaming hotels have massive earnings upside that are now being crystallised as we speak since the introduction of the new gaming legislation and tax rates as of 16 August, 2012.

“This property and business (both as going concerns) represents a brilliant opportunity for interstate hoteliers to buy into Victoria’s highly profitable gaming sector.

“There is also a dual lane drive through bottle shop that could provide an excellent development opportunity (stca) for a large beer garden, along with refurbishment potential of the 37 accommodation rooms.”

The hotel is prominently located on the corner of Wyndham and Fryers Streets, Shepparton, approximately two hours N/E of Melbourne. 

Source: The Shout, 10 September 2012