pubs
- Thread starter grossreal
- Start date
not looking at perth as yet
cbd sydney, bris,melb
if you know of that perth person by all means give them my details
the perth market is behind these markets by 12 to 18 months
if you do read you will see we work on a clock system and if syd is on its knees know the others follow
so we follow the clock we are just a bit in front
or we try to be
with regards to pubs we have them lower then the underlaying land value
so the land below is worth more then the pub.
whats the value of the pub
in alot of case 0 or -0
so why am I looking at them
quess
so whats the problem
investment money/bank funding
go to a bank and ask to fund a pub
look at the blank look on the person face ( oh my god he wants me to fund this)(you have more chance of funding a toxic waste dump)
so are they cheap
yes
are they cashflow positive in most cases
yes
are they long term
as long as you have the beer yes
do the do better then 10%
try 15%
I have a fund thats paying 12.5% just into pubs
so do we have any in this market
this is both a question(are u in this market)
and also why not
people ask should I invest
this is one market alot have not look at.
hope this answers your question
cbd sydney, bris,melb
if you know of that perth person by all means give them my details
the perth market is behind these markets by 12 to 18 months
if you do read you will see we work on a clock system and if syd is on its knees know the others follow
so we follow the clock we are just a bit in front
or we try to be
with regards to pubs we have them lower then the underlaying land value
so the land below is worth more then the pub.
whats the value of the pub
in alot of case 0 or -0
so why am I looking at them
quess
so whats the problem
investment money/bank funding
go to a bank and ask to fund a pub
look at the blank look on the person face ( oh my god he wants me to fund this)(you have more chance of funding a toxic waste dump)
so are they cheap
yes
are they cashflow positive in most cases
yes
are they long term
as long as you have the beer yes
do the do better then 10%
try 15%
I have a fund thats paying 12.5% just into pubs
so do we have any in this market
this is both a question(are u in this market)
and also why not
people ask should I invest
this is one market alot have not look at.
hope this answers your question
Interesting thanks.
Am I in the market ? for investing yes. But at the moment I only RIP's and a a couple of shares. Have I thought about this ? no. Would I ? Sure. Would I have questions /reservations ? of course. if nothing else I woudl wonder if I have anywhere near the $ to to do it either
Am I in the market ? for investing yes. But at the moment I only RIP's and a a couple of shares. Have I thought about this ? no. Would I ? Sure. Would I have questions /reservations ? of course. if nothing else I woudl wonder if I have anywhere near the $ to to do it either
I'm in pubs.
It seems to be large pubs ($10M+) that are going for a song, particularly those being handled be receivers. I've seen a lot of freeholds trade on between 6% and 7% in the last few months.
Justin Hemmes picked up one at auction in Sydney recently for a quarter of previous sale price.
It seems to be large pubs ($10M+) that are going for a song, particularly those being handled be receivers. I've seen a lot of freeholds trade on between 6% and 7% in the last few months.
Justin Hemmes picked up one at auction in Sydney recently for a quarter of previous sale price.
I always have a look each week in the paper for the country hotel-motel type set-ups freeholds just to do the numbers,My Wife and me bought a Free-hold Hotel out in the middle of the cane farms outside Townville we did a exchange with one Japanese Gold Coast based business-man we had free title on the the hotel,he was handed over 2 unemcumbered properties ,the first time he flew us up in his private jet everything looked rock solid,just needed a lot of work and paint both sets of books also looked good
,i still think too this day on both times we went up,,he hired the local footballt team to be in the bar each time,because the day we took control everything went downhill very fast we lasted only 6 months,leased it out for 5 years then every person that held the leasegave us so many problems that we ended up selling it for 180k less
then the walkin value,and that was 19 years ago,she went back to being a Dentist-i went back too working 100hours Aweek as a plumber,..willair..
Last edited:
sounds like Mr Japan learned some trick from Mr Alan Bond.
What's your definition of "on it's knees" ??
I saw a large string of freehold hotels on the East Coast less than 4 weeks ago, mainly in Qld, heavily advertised in both the Fin Review and the Australian all sell, either under the hammer or soon thereafter, for around the 6.5 to 7.0% nett yield mark.
Dazz - which pubs were these?? Those yields are EXTREMELY low for pubs.
hi all
Hulkster did you go to the bereford auction I did
it was worth 15 mil on my numbers and sold for 14.6 so not a real song
they hd put alot of money into it before they sold it they wanted 18 mil from the auction and they were asking if the syndicate would go higher and the answer was no
14.6 was a good to reasonable price
it was one of justin people that bid a lady in a white coat not alot of bidders and for me it will not do the numbrs that he wants at this stage but will see
dazz most of those you saw were lease hold to woolworths you can buy alot of lease hold ones but no good to the syndicate as we need freehold and one pub just passed in freehold at 14.5% net return and we had a go at that one but have three others that are better margins and can't buy everything.
am looking for publicans to fill the position of that in the pubs and acouple of them and no can't fill if never been one,
as for on its knees lets just do the numbers on the beresford
bought 18 mil
put 25m low to 30m high into it in fit out turn over into the 2.5 mil net
the book did not go to auctions so you had to do your due diligents
sold 14.6
try this one
65k per week thru the till they bought for 9 mil 2007
we had it at 6 mil
sold for under 6 at auction to a unknown buyer
ours was a structured deal there was cash
1.5mil net income thats 25% return
even half that and its a 13% return
westpac is holding pubs just on income
spoke to one person who was head of a credit for a bank had an offer of 21 mil to clear off his desk which was 95% of his debit position and he had the liquidator in there
and his answer was simple
the money comming in was covering his debt the liquidators costs and pay a bit back to other creditors and were sitting to wait
can't do that on a 6% net return
can when its over 15%
we are dealing private and with receivers and yes at the moment on their kness is the closes that I can put it
the value is thru the floor but the flows arn't and if you go for cash flow they are a good deal from my viewing
Hulkster did you go to the bereford auction I did
it was worth 15 mil on my numbers and sold for 14.6 so not a real song
they hd put alot of money into it before they sold it they wanted 18 mil from the auction and they were asking if the syndicate would go higher and the answer was no
14.6 was a good to reasonable price
it was one of justin people that bid a lady in a white coat not alot of bidders and for me it will not do the numbrs that he wants at this stage but will see
dazz most of those you saw were lease hold to woolworths you can buy alot of lease hold ones but no good to the syndicate as we need freehold and one pub just passed in freehold at 14.5% net return and we had a go at that one but have three others that are better margins and can't buy everything.
am looking for publicans to fill the position of that in the pubs and acouple of them and no can't fill if never been one,
as for on its knees lets just do the numbers on the beresford
bought 18 mil
put 25m low to 30m high into it in fit out turn over into the 2.5 mil net
the book did not go to auctions so you had to do your due diligents
sold 14.6
try this one
65k per week thru the till they bought for 9 mil 2007
we had it at 6 mil
sold for under 6 at auction to a unknown buyer
ours was a structured deal there was cash
1.5mil net income thats 25% return
even half that and its a 13% return
westpac is holding pubs just on income
spoke to one person who was head of a credit for a bank had an offer of 21 mil to clear off his desk which was 95% of his debit position and he had the liquidator in there
and his answer was simple
the money comming in was covering his debt the liquidators costs and pay a bit back to other creditors and were sitting to wait
can't do that on a 6% net return
can when its over 15%
we are dealing private and with receivers and yes at the moment on their kness is the closes that I can put it
the value is thru the floor but the flows arn't and if you go for cash flow they are a good deal from my viewing
Article re the Beresford pub
http://www.smh.com.au/business/batt...beresford-sells-for-a-song-20100413-s7m8.html
http://www.smh.com.au/business/batt...beresford-sells-for-a-song-20100413-s7m8.html
On the Qld costal strip from Brisbane to Cape York there are several freeholds that i have have a look at over the past 6 months some
below 700k with returns above 25%,but even with the poker machine-keno there is is no way you can do the same deals as the local discount
barns,they will just burn you no inbetweens ,and you cannot predict how people will act if the save 2-4 dollars on a box of beer,the only way you could make those old hotels work is open them up too the backpacker
market..willair..imho..
There are a lot of pub funds/mangaement groups that are being sold up. You only have to read the major newspapers to see pubs selling every week for between 6% and 8% yields.
If the pub has gone under then you can certainly buy on better indicative yields but you need someone to run it, and run it better so that you don't fall in the same hole.
It's rare for a freehold to hit the market in my area, they're usually sold off market at yields below 10%, and if you have a strong tenant and 150+ years of trade history they can be a comfortable investment.
If the pub has gone under then you can certainly buy on better indicative yields but you need someone to run it, and run it better so that you don't fall in the same hole.
It's rare for a freehold to hit the market in my area, they're usually sold off market at yields below 10%, and if you have a strong tenant and 150+ years of trade history they can be a comfortable investment.
what about a pub still zoned pub but not operated in 20 years?
Seems like others are looking ....
http://www.dailytelegraph.com.au/ne...wl-that-clinched/story-e6freuy9-1225886895424
....http://www.dailytelegraph.com.au/ne...wl-that-clinched/story-e6freuy9-1225886895424
