By Erle Levey
One of Noosa’s most iconic landmarks has sold for $13.9 million to a Queensland private investor.
Just about everyone who knows Noosa has a story to tell about the Reef Hotel.
With a gateway view to Noosa Heads from its position at 19 Noosa Drive, it was synonymous with property and business deals written on the back of beer coasters in the ’70s and ’80s.
It has been where sports people gathered, where people enjoyed the view along with brunch from the deck of a Sunday, and made much of the Sunday Sess.
Now it has been sold at public auction by JLL’s joint heads of retail investments – Australia, Jacob Swan and Sam Hatcher.
Mr Swan said the landmark was a rare offering to the market.
“The Noosa Reef Hotel sits on an expansive 5069sq m site at the top of the famous Noosa Hill, providing stunningly expansive views out over Noosa Main Beach and the North Shore.”
He said the hotel was bound by a long-term, net lease to Endeavour Group, which was a subsidiary of Woolworths Group, with initial expiry in 2029.
It comes with four by 10-year options, which provides the buyer with strong income certainty and annual fixed growth.
The property is currently returning a net income of approximately $692,515.
It is spread over an expansive two levels with restaurant, main bar, sports bar, gaming room and a strong trading BWS drive-through.
“Given the strength of the tenant covenant and the hotel’s blue-ribbon location, we received very strong investor response towards the property,” Mr Swan said.
“Investor sentiment for long-lease assets has never been stronger, fuelled by a positive interest rate environment and demand for essential service operations.
Mr Hatcher said the Noosa local economy had been one of the strongest in the country over the past 12 months, with record domestic tourism from both local within Queensland, and from the southern states.
Brisbane property and retail entrepreneur Greg Josephson is believed to be the buyer.
Mr Josephson with his brother Michael founded Universal Store at Carindale in 1999, which they built up to an Australian-wide network of 53 stores.
The auction on Tuesday, April 27, produced 10 registered bidders and the campaign generated more than 200 inquiries from throughout Australia and overseas.
