Pippi's points to strong pub investment activity

A well-established pub group has snapped up Pippi’s at the Point hotel in a further display of the interest in NSW non-metro assets. Transacting last week for a figure believed to be around $7 million, the Lake Macquarie freehold going concern was sold by Daniel Dragicevich of CBRE Hotels on behalf of long time publicans Pauline and John Stirling.

CBRE notes significant activity within the Lower North Coast’s hotel market, citing its sales of the Settlers Tavern, Swansea Hotel, Spinning Wheel Hotel and the Lakes Hotel over the past 12 months.

Speaking to TheShout, Dragicevich said the transaction was another sign of the continued resurgence of the NSW hotel market – not only in metropolitan Sydney, but also in attractive regional locations.

“We have noticed strong demand for particular regional assets, as they traditionally provide more favourable returns than metro opportunities, yet still exhibit good underlying property and strong business fundamentals,” said Dragicevich.

Pippi’s enjoys a prime waterfront position on a 2200 square metre site and was bought by a “well-known North Coast-based hotel group” that already owns several venues in the region.

Source: The Shout, 26 August 2013