The Freehold Interest in the ‘Crown Inn’, located in the Adelaide suburb of Old Reynella has been taken to market, representing a sought-after investment opportunity within the nation’s highly competitive retail and hospitality investment market, following a year of record high transaction volumes in the sector. The property is being offered exclusively for sale by JLL’s Will Connolly, John Musca, Roger Klem and Stuart Taylor via a national ‘Expressions of Interest’ campaign.

Offered with a long-term lease to one of Australia’s largest hotel operators ALH Group, a subsidiary of ASX-listed Endeavour Group, which operates over 350 venues across the country, the property occupies a commanding 6,550sqm site in the heart of Old Reynella’s retail centre, within 20kms of Adelaide’s CBD. With a current net annual income of $868,000, the property provides investors with a strong platform of return with the added security of a 10-year initial term, followed by four further 10-year options.

Will Connolly, JLL Hotels Senior Vice President, anticipates the asset to receive a flurry of interest given the spike in transactional activity nationally within the retail and hospitality investment market. “There is a level of momentum that is palpable within this profile of investment class that has remained consistent over the past 18 months. This will no doubt carry on into The Crown Inn as interest ranging from private capital to institutional funds will identify the value in security offered via the covenant of ALH Group, one of Australia’s market leading hospitality operators”.

Showcasing a multi-faceted hospitality and gaming venue, The Crown Inn provides modern amenity and extensive facilities which include a large family bistro with children’s play area, sports bar with TAB facilities, gaming lounge with 33 electronic gaming machines, drive-through bottle shop and extensive on-site parking.

Stuart Taylor, Senior Director of JLL Retail Investments commenting, “the demand for long WALE assets continue to hold firm, with traditional retail property investors now looking to the hospitality investment market such as The Crown Inn as an avenue to secure assets. Investors are now acutely aware that these assets provide strong tenant covenants, landlord favourable leases and attractive underlying land value”.

Roger Klem, State Head of Capital Markets, outlines that Adelaide’s zero stamp duty on commercial transactions provides immediacy of income return. “An approximate 5% saving on acquisition costs is further supported by a strong South Australian economy experiencing the strongest housing price growth nationally year-to-date and a 40-year defence spending boom”, Klem says.

The Freehold Interest in The Crown Inn, Old Reynella SA is available via Expressions of Interest closing Thursday 27 October at 5pm.

For more information please contact the agents via the contact details below. 

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