Noosa’s $12 million landmark pub ready to sell
One of Noosa's classic watering holes with some of the best coastal views in Australia should soon be toasting new owners.
The Noosa Reef Hotel - an enduring favourite hangout of the first wave of Noosa surfing pioneers - is valued at $12.1 million, according to owners ALE Property Group.
ALE said the figure reflected independent valuations conducted by Savills, Opteon and CBRE late in 2020.
The Reef sits on top of Noosa Hill overlooking Main Beach, Noosa North Shore and Cooloola's Coloured Sands.
It is already attracting huge domestic and overseas investor interest in the lead up to its public auction at 11am on Tuesday, April 27.
Selling agent JLL Retail Investments said the 5069 sqm site with its BWS liquor outlet was "a rare opportunity to acquire a historic asset within one of the country's most desirable locations".
The popular pub is leased to Woolworth Group subsidiary, the Endeavour Group until 2029 and has four 10-year renewal options.
JLL retail investment representative Jacob Swan said the Reef, which is also home to Flanagan's Irish Pub, is returning a net annual income of $692,515.
"We are anticipating a very strong investor response to this opportunity, driven by the strength of the tenant covenant and further enhanced by the blue ribbon location," Mr Swan said.
Fellow JLL sales agent Sam Hatcher said the Noosa economy had been one of the strongest in the country over the past 12 months.
"Investor sentiment for long lease assets has never been stronger, fuelled by a positive interest rate environment and demand for essential service operations," Mr Hatcher said.
"The Noosa housing market has continually seen record results over this period, with cashed up southern buyers looking to secure their own slice of Noosa.
"With freestanding fast food, fuel and supermarket assets now regularly commanding cap rates in the mid-low 4 per cent range, there is clearly significant depth to this buyer pool, as private and institutional investors alike seek, stable, long term returns," he said.
ALE's website lists ownership of 32 hotels in Queensland including Pelican Waters and the historic Breakfast Creek in Brisbane.