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.

The acquisition is the latest for Impact Investment Group, a leading Australian impact investment funds manager. The group, which has more than $730 million in existing assets and under construction, aims to shift capital towards investments that generate social and environmental value while delivering excellent returns for investors.

An IIG spokesperson said the group saw strong potential to regenerate the “heart and soul” of Byron Bay with a strategy focused on achieving bold green and social impact initiatives over a three to four year period.

“We’re looking forward to settling this transaction in six months’ time. It’s a great hotel, and we’ve already made a lot of progress planning our environmental upgrades and how we’ll work with the operator and locals to deliver real positive impacts for the Byron Bay community.”

Known as the ‘Top Pub’ to locals, the Beach Hotel is situated on a 4,585sqm site at the apex of the commercial precinct of Byron Bay.

For more information on the sales process and property contact Wayne Bunz and Daniel Dragicevich of CBRE Hotels via the below contact details.

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