EG Lays Down $43m for Two Waterfront Taverns

Real estate fund manager EG has swooped on two taverns, paying $43 million to add to its private wealth division, with the underlying land values driving the sale.

The Anglers Tavern in Maribyrnong, Victoria was purchased for $23.33 million in an off-market sale.

The Victorian asset would be leased to the Australian Venue Co on an initial 15-year term, giving value-add opportunities on the 8200sq m landholding on the river.

The Redcliffe Tavern and adjoining liquor superstore, just north of Brisbane, was purchased for $19.29 million through Jon Tyson of Savills.

The asset is on a prime, 2498sq m corner site opposite Bluewater Square Shopping Centre, two blocks from Moreton Bay.

It is leased to Queensland Venue Co with a 7.19 year weighted average lease expiry and net passing yield of 5.5 per cent per annum.

EG head of capital transactions Sean Fleming said property assets in the hospitality sector presented a strong platform for growth and consolidation.

“Great hospitality venues remain relevant to local communities, especially with lead operators building their reputation,” Fleming said.

While the hospitality sector has been heavily affected by Covid with restrictions impacting operations, property sales continue to soar.

At Burleigh Waters on the Gold Coast, the Varsity Lakes Tavern, Dan Murphy’s and Fitness First sold for $38 million in November on a 17,000sq m freehold site to a Korean family now based in Melbourne.

Further north, the Pimpama Central Tavern was sold off the plan for $22.2 million on the same day, through Burgess Rawson.

Nationwide, pub sales in 2021 hit the $2-billion mark with the majority sold in NSW, including the Hotel Brunswick, north of Byron Bay, for $68 million in December.