Brothers Sports Club to be sold for $10.9m, owner to build hotel
A BRISBANE-based property syndicator will pay $10.9 million for Brothers Sports Club after exchanging contracts for the purchase of freehold land.
Stronghold Investment Services is set to become the new owner of Brothers Sports Club.
Stronghold head of property and advisory Steve de Nys said "it was a pretty attractive asset”.
"The club had about six years remaining on their lease so we had a chat with them and they said they were interested in taking a 15-year lease if we did this, this and that and I said `I think we can do that',” he said.
"A big attraction for us was the 6200sq m of the land next to the club building which we have the ability to access ... and we're talking to a hotel operators about potentially developing the site.”
Established in 1947, the 8.22ha freehold property at 130 Takalvan St is on a prime high exposure gateway position on the main road into Bundaberg.
It has two restaurants and a cafe, 208 gaming machines, sports bar with TAB, beer garden, a large auditorium with capacity up to 700 people, a conference centre and facilities for a range of sports for its 25,000 members
Mr de Nys said after settlement next year the property will be placed into the Stronghold Hospitality Property Trust No. 14 with an indicative cash return of 9.5 per cent in the 12 months.
The trust has a five-year term and Brothers, whose 15-year lease starts after settlement, will have the option to purchase it after expiry.
Mr de Nys said Stronghold will in future seek more exposure to the hospitality sector.
"We will be looking at pubs and clubs and motels which we see getting to the end of their economic life,” he said.