A Manly property leased to craft brewer 4 Pines Brewing Co. – owned by the world’s largest brewer, Anheuser-Busch InBev – is predicted to fetch more than $4 million when it goes under the hammer on Tuesday.
The property is one four Sydney sites operated by the Australian craft brewer, which was established in Sydney in 2008 and acquired by the Belgian-based conglomerate in late 2017. It will be one of 16 properties at Burgess Rawson’s April portfolio auction in Sydney.
The Manly site – the birthplace of 4 Pines – features the brand’s original microbrewery and a restaurant, with views to the Manly ferry terminal.
Listing agent Michael Gilbert said that interest in the property had primarily come from Sydney-based investors, with the agency expecting “more than $4 million” on auction day.
The property, located at 43-45 East Esplanade, is currently leased until 2026, with options to 2036, on a net annual rent of $213,000.
Early test for pub market
The auction presents an early test for Sydney’s pub market in 2019.
After undergoing immense growth over the past 5 years, there has been recent speculation that values may be flatlining, with one of the country’s largest pub REITs, ALE Property Group, recently reporting an increase in yields – often an indicator of softening values.
Despite this, Mr Gilbert said that the property’s unique location near the Manly Esplanade, the well-regarded tenant and the area’s lack of similar hospitality venues, set it apart and would likely contribute to a strong result.
“[It’s] very, very tightly held real estate… When you get off the actual Esplanade this is the first bar you come too. It’s a craft brewery that reflects the Manly lifestyle.”
The property is not the only pub listing currently on the market in Manly. At the other end of the Esplanade, The Hotel Steyne, owned by a consortium including John Singleton, property investor Robert Whyte, the Laundy publican family and investor Mark Carnegie, was recently listed with expectations of $70 million.
Childcare centres among auction highlights
Leased to HoneyBears ELC until 2033, with options to 2053, the purpose-built Sylvania Waters property features 39 places and an annual net income of $168,000.
The Five Dock property is a 46-place centre currently leased to operator Young Academics until 2028, with options to 2048. Refurbished in 2018, the centre is currently generating a net income of $299,000 a year.
The auction will also feature properties located on outside Sydney, including the Central Coast, Newcastle and as far north as Cairns. Price expectations range from $1 million to more than $8.5 million.
Burgess Rawson’s flagship auction will be held at Doltone House on 181 Elizabeth Street, Sydney, commencing at 11am.