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Two alcohol-related sales on the eastern seaboard have caught the eye of REB Commercial this week.
In Brisbane, NAI Harcourts Pinnacle auctioned off Covent Garden — a premier gin bar located in the Queensland capital, which agency director Phil Grant described as the “perfect mix of location and business”.
“The potential for this location is invaluable — there’s plenty of long-term growth potential in a street that so rarely has purchasing opportunity,” he added.
An emphasis on online marketing — without straying from traditional pavement pounding methods of flyer drops — saw the property garner heavy interest from prospective buyers, which ultimately resulted in a sales price of $2,550,000 achieved for the property that has 251 square metres of building area, 336 square metres of land and a reflected annual yield of 4.5 per cent.
Speaking on what made the purchase so desirable, NAI Harcourts Pinnacle sales consultant Hamish Armstrong described how Covent Garden is the “go-to gin bar in the west end” and is an institution that has been a stalwart of the local scene for almost two decades.
“This type of back story is what made it such a desirable investment opportunity,” Mr Armstrong said.
Mr Armstrong explained that the property possesses plenty of “long-term growth potential” thanks in part to the “hundreds of million dollars being invested into the west end and south Brisbane areas ahead of the Olympics”.
Down south, it was the sale of an established alcohol brand that achieved major sales results after the Dan Murphy’s in Malvern changed hands for the first time in 100 years.
Colliers’ director of retail middle markets Mike Crittenden explained the campaign for the building has “received an incredible amount of interest, with in excess of 350 enquiries from offshore and interstate investors, while local private investors dominated interest — with 82 per cent of all enquiries”.
“At the end of the campaign we received in excess of $200 million in offers,” he added.
The recently refurbished, longstanding Dan Murphy’s store, which is located just off the busy retail strip of Glenferrie Road, opposite the Coles, sold for $21.1 million on a yield of 3.45 per cent — the sharpest yield for a Dan Murphy’s nationally in over five years.
Tim McIntosh, also director of retail middle markets at Colliers, proclaimed that the sale “is a strong message to the market that ultra-defensive freestanding retail investments backed by undoubted covenants, long lease tenures and attractive growth remain resilient in any market cycle”.
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