Syndicator strikes it rich in renowned mining town

October 28, 2022

SENTINEL Property Group has extended its foothold in resource rich central Queensland with the purchase of a hotel/motel complex with development upside

The syndicator paid $8m for the Black Nugget hotel/motel at 81 Mills Ave, Moranbah, west of Mackay.

The property was on a 1.7 ha site, with immediate development potential for residential apartments or additional amenities on surplus land.

It is the sixth asset in the Sentinel Northern Australia Investment Fund and was sold by a private investor through Pat O’Driscoll Real Estate.

The sale reflected an initial passing yield of 8.44 per cent.

Sentinel chief executive Warren Ebert said the hotel investment market had been strong in the past 24 months, underpinned by demand from the major retail groups, Woolworths and Coles, property trusts, syndicates and high net worth private investors.

“This demand has been particularly evident in the sale of freehold investment hotels which have witnessed yield compression for strong lease covenants,” Mr Ebert said.

The complex has five buildings –  the hotel, three motel buildings with 28 rooms and a manager’s house.

The pub includes a public/sports bar, gaming room with 40 electronic gaming machines, function room, beer garden, bistro and commercial kitchen, dual lane drive through and walk-in bottle shop, and back-of-house areas.

The hotel licence includes one detached bottle shop located within the nearby Moranbah Fair (Coles) Shopping Centre, which is also owned by Sentinel.

An experienced hotel motel corporate group will operate the hotel and motel’s leasehold under a 20-year triple net lease.

Mr Ebert said Moranbah was the largest town by population within the Isaac Region of central Queensland, which generated economic output of more than $22bn a year.

Chris Herde | Courier Mail

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