Prominently positioned at the arterial intersection of Connells Point and Kings Georges Roads; the impressive 1,334sqm property is also located within 1.5kms of Hurstville CBD - and is surrounded by national retailers, McDonalds, BP, IGA and BWS.
Offered to market with an initial 20 year lease in place, plus options, and anchored by the highly regarded Francis Venues - who separately own and operate a high-performing portfolio of 10 pubs across Melbourne and Sydney.
The lease is triple net with strong rental growth via annual CPI increases and both mid and end of term market rent reviews. As part of the transaction the freehold owner also gains ownership of the valuable Hotel License and 27 gaming machine authorities, currently valued at more than $11 million on an in situ basis.
"Sydney metropolitan freehold investment hotels are rarely offered to market, and as such we expect significant market interest. This is therefore an unmistakably rare opportunity for an investor, one who perhaps doesn't have the requisite operational experience, and to own a pub backed by a blue chip tenant - complete with intrinsic physical property fundamentals and an investment-grade lease structure," stated HTL National Director, Dan Dragicevich.
Comparable investment grade properties include Dan Murphy's and First Choice Liquor Barns - which are always highly sought after by the market and with the most recent being a Dan Murphys in regional South Australia which sold on a 5.2 per cent yield.
HTL Property also sold the freehold component of the Argyle Hotel in Moss Value earlier this
year at 4.8 per cent.
“Hotels remain at the very vanguard of a number of astute investors acquisition lists; and the opportunity to acquire The Kings Head Tavern represents and investment which mitigates management risk and allows participation in the clearly yield contracting asset class," said HTL Property Managing Director, Andrew Jolliffe.
The Freehold Investment interest in the Kings Head Tavern is for sale by Expressions of Interest closing Wednesday 10 September.
