Impact Investment Group is set to expand its portfolio with the $70 million acquisition of Byron Bay’s iconic Beach Hotel, one of Australia’s most recognised hospitality assets.
CBRE Hotels’ Daniel Dragicevich and Wayne Bunz represented Impact Investment Group in the off-market deal, which was struck with owner Max Twigg who paid $44 million for the hotel in 2007 following the sale of his waste management business.
“There are very few landmark beachside freehold hotels like this in Australia, both in terms of scale and location. The irreplaceable oceanfront site, lease covenant, future development and reconfiguration upside and aspirational nature of the hotel provide a compelling mix for astute investors such as IIG,” Mr Dragicevich said.
CBRE’s Mr Bunz added; “This is a strong price for an Australian pub and highlights the considerable ongoing interest in the country’s hotel investment market.”
The beachfront property is leased to Melbourne pub industry identity John van Haandel on a 10-year lease with a further 10-year option. Based on the current rental income, the sale price represents a 6.3% passive investment return.