The Berwick Inn Hotel is leased to Australian Leisure & Hospitality Group (ALH), which is 75% owned by Woolworths and is the largest operator of pubs in the country. It holds the lease until November 2028, with four further 10-year options to extend to 2068.

The high profile two-storey venue is located on a prominent 4,166sqm site and comprises a bar, bistro, beer garden and gaming facilities as well as a large 50 space on-grade carpark all within the retail core of Berwick - a focal point of the City of Casey, which is the third fastest growing municipality of Melbourne.

CBRE agents Daniel Dragicevich, Scott Callow and Justin Dowers have been appointed to sell the property via a Tender process.

Mr Dragicevich said the investment grade-tenanted venue was set to once again test the passive hotel investment market. The offering of the Berwick follows the recent market topping sales of the Beach Hotel in Byron Bay for $70 million and the Clovelly Hotel in Sydney for $34 million – although a key difference was that they were both leased to privately owned tenants.

“Typically, hotels with the blue chip tenant covenant of ALH trade at between 100-150 basis points sharper than those with private tenants. ALH leased properties have actually been in very short supply in recent times, so a keenly fought sales campaign is expected,” Mr Dragicevich said.

Assets of this nature tend to appeal to a wide range of purchaser types including both private retail investors and corporate investment vehicles, which have been active purchasers of these high-quality retail investment grade asset types.

“We are anticipating a lot of interest from traditional retail investors in this asset given that the covenant is 75% owned by Woolworths Limited. The difference with the ALH lease compared to traditional supermarket or liquor leases is that this is a triple net structure with CPI increases and market reviews which will be well received from investors across the country,” Mr Dowers concluded.

To discuss the sale opporunity contact Daniel Dragicevich or Scott Callow of CBRE Hotels.

Click the below link to view property images and Public Tender closing date details.

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See also:

Melbourne's mixed use Bell City complex for sale

East end Melbourne CBD hotel portfolio for sale

Tankerville Arms, renowned Fitzroy hotel for sale