Savills Hotels has announced the freehold investment sale of Base Backpackers in Magnetic Island, reporting that there were over 100 enquiries and eight formal Expressions of Interest submitted.

At a glance: 

• After a six week Expression of Interest campaign and over 100 enquiries, the strong interest (offers received) added time to negotiations longer than anticipated.
• Both the vendor and buyer wish to remain confidential about the sale but it is confirmed that both are interstate investors. The sale price represented a 9.38% yield.
• It was a freehold investment sale with the seller remaining on as the operator of the business with a brand new long term lease.

Investment Highlights:

• Significant development upside with room for additional accommodation and amenities (subject to Council approval).
• 1.068 hectare freehold beachfront site with a Great Barrier Reef Marine Park Permit.
• Ideally positioned site on a highly south destination between Cairns and Airlie Beach, easily accessed from Townsville.
• Substantial accommodation offering with 186 beds.
• Strong covenant, ideal beachfront position with excellent trading history and a proven track record.

The Savills team are anticipating a wave of activity within the hospitality sector throughout the remainder of 2019, with a continuation of strategic off-market transactions as well as portfolio mergers and acquisitions, larger scale metropolitan acquisitions and on-market campaigns.

For more information about the Base Backpackers sale or to discuss the hospitality market in general, phone or email the agents Leon Alaban or Christian Tsalikis from Savills via the contact details below.

See also:

Regional Queensland pub Inglewood Hotel sold

Coolangatta Sands Hotel sold to Sydney based hotelier Joe Irvin of the privately owned Irvin Hotel Group

CBRE announces sale of Don Pancho Resort to a Queensland based hotel owner-operator