All four of ALE Property Group’s venues listed for auction last week were sold at more than 20 per cent of their book value of $21 million.
Each of the ALE venues was sold to a different investor with each one leased to ALH until 2028. All four pubs sold on yields at or below 5 per cent.
Pelican Waters Tavern (pictured) in Caloundra on the Sunshine Coast sold for the highest of the four at $10.8 million on a yield of 4.15 per cent.
Brisbane’s Edinburgh Castle Hotel sold for $7.5 million, while the Kedron Park Hotel sold for $4.6 million and The Top Pub in Morwell, Victoria for $3.06 million.
The auction was a hugely successful day with all 26 properties selling for a combined total of over $109 million. More than 1,000 people from around the world watched the auction including New Zealand, America, Hong Kong and Taiwan.
Auction house Burgess Rawson suggests that the results are indicative of confidence and stability heading into the final quarter of FY21 and that investors seem eager to spend with “plenty of undeployed capital sitting frustratingly idle”.