The Freehold Interest in two outstanding metropolitan Adelaide retail and hospitality assets have been taken to market, representing two of the most significantly underpinned opportunities to come to market in 2022. The Highbury Hotel and Village Tavern, Golden Grove, both include nationally recognised retail liquor outlets ‘Dan Murphy’s on title, providing the market a ‘best in class’ opportunity to acquire two of the most securely underpinned real estate opportunities on a national scale. The assets are being offered exclusively for sale in- one-line or individually by JLL’s Will Connolly, John Musca, Ben Parkinson and Stuart Taylor via a national Expressions of Interest campaign.

Both assets are offered with long-term, triple net leases to one of Australia’s largest hotel and retail operators ALH Group, a subsidiary of ASX-listed Endeavour Group, who operate over 350 licensed venues and over 250 Dan Murphy’s retail outlets across the country. The assets occupy a combined landholding of 19,818sqm, both with favorable ‘Activity Centre’ zoning, with the Village Tavern situated in the heart of Golden Grove’s retail and commercial precinct. With a combined net annual income of $3,005,397, the assets provide investors with unequivocal income security by way of annual increases via CPI, to a maximum of 5% and minimum of 3%.

John Musca, Managing Director of JLL Hotels & Hospitality Group, indicates that “hotel investments have quickly become the retail asset class of choice nationally largely reflecting their recession-proof underlying tenancy businesses and the uniquely valuable licence and gaming approvals perpetually attached to these properties”.

The Highbury Hotel showcases a multi-faceted hotel complex with multiple trading zones throughout, including the strong demand generator of 40 electronic gaming machines. Situated on title is a modern, purpose-built Dan Murphy’s outlet with both the hotel and retail outlet sharing the extensive number of car parking on site.

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Stuart Taylor, Senior Director of JLL Retail Investments expects competition to be fierce, commenting “retail investments with Tier 1 tenant covenants continue to receive enormous investor attention as the ‘flight to quality’ theme continues to play out.”

“Whilst triple net leases have always been appealing to investors, they are become increasingly attractive in the current high inflation environment, as they protect investors against any downside income risk from rising outgoings and costs of capital works. These leases are also compelling due to the annual CPI rental increases with a minimum of 3%. This lease structure ensures a growing inflation-linked income stream”.

The Village Tavern, Golden Grove is positioned in one of Adelaide’s most thriving retail and commercial precincts, with significant neighboring properties including the ‘The Grove’ shopping centre, which houses nationally recognised retail brands including Woolworths, ALDI and Big W. With recent refurbishments throughout, the property provides modern facilities, including a state-of-the-art outdoor live entertainment zone, along with a dedicated gaming room housing 40 electronic gaming machines. Adjoining the property is the purpose-built, high-performing Dan Murphy’s retail outlet.

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Will Connolly, Senior Vice President of JLL Hotels & Hospitality concludes that “demand for long WALE assets from both a retail and hotel perspective continue to hold firm, with the traditional retail investor now clearly identifying the hotel investment market as an avenue to secure premier assets. There is an acute awareness now that these assets also provide strong tenant covenants, landlord favorable leases and significant underlying land value – the Highbury Hotel and Village Tavern provide a perfect marriage between two of the nation’s strongest markets”.

The Freehold Interest in the Highbury Hotel and Village Tavern are available to purchase in-one- line or individually via Expressions of Interest closing Thursday 10 November at 5pm.

To request a copy of the Information Memorandum please contact one of the marketing agents JLL’s Will Connolly, John Musca, Ben Parkinson and Stuart Taylor via the contact details below.

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