Strong buyer demand tipped for Parramatta’s Rose & Crown Hotel
Image courtesy of: smh.com.au
Parramatta’s landmark Rose & Crown Hotel is to be offered for public sale on behalf of private investor partnership TWL Hotels.
CBRE Hotels Director Daniel Dragicevich said buyer demand for quality pub investment opportunities in metropolitan Sydney was expected to underpin strong interest in the upcoming sale as was the growth occurring in the broader Parramatta market.
The Rose & Crown has consistently been in the Top 150 gaming hotels in NSW and is one of the only single-ownership venues on that list.
“The A-grade pub market in metropolitan Sydney is extremely strong at the moment with plenty of buyers in what is a very tightly held market segment,” Mr Dragicevich said.
“Some of the prices that are being achieved and the yields they represent are reminiscent of the pre-GFC pub market. Historically low interest rates, a relatively clear legislative environment and the fact that many of the larger groups are looking for a similar style of asset has led to a price squeeze at the top end of the market and this is giving prospective sellers real confidence to go to the market and achieve a premium result”.”
The Rose & Crown is strategically located on Victoria Road in the heart of the rapidly developing northern precinct of the Parramatta CBD. The sale includes a 24-hour hotel licence and 30 gaming machine authorities.
The hotel is being offered by way of national, two-stage Expression of Interest / Tender process, which will be steered by Mr Dragicevich.
Located on a high profile 1,126sqm corner site, the two-level property incorporates a ground floor public bar, bistro, gaming room, TAB and beer garden as well as on-site parking, first floor offices and accommodation.
Mr Dragicevich said the hotel benefitted from an as new fit out and the potential for future trading upside.
Another drawcard for buyers will be the development occurring in Parramatta – one of the fastest growing urban areas in the country
Peter Vines of CBRE’s Capital Markets team said; “The immediate area surrounding the Rose & Crown has undergone rapid development in recent years with a range of high density, residential projects completed. This will contribute to the hotel’s continued success as will the overall growth occurring in the Parramatta CBD, which is one of the fastest growing commercial centres in the country.”
Parramatta’s population is forecast to reach 257,400 by 2031 - a 13.7% increase, with several thousand new dwellings surrounding Parramatta in the pipeline and already under construction
This includes projects such as the Lennox Bridge car park, which incorporates 400+ units to be sold off the plan through CBRE Residential Projects. Another significant project is Meriton’s twin-towered Altitude – the tallest residential building in Parramatta. It includes towers of 54 and 32 storey on the former David Jones site at 330 Church St.
“Significant funds have also been committed by local, state and federal government for infrastructure initiatives including a proposed light rail network and the Westconnex project,” Mr Vines said.
Source: CBRE Australia - 15th June 2014
