Sometimes major property purchases are so intriguing, I can’t help wanting to find out more. And one of the most interesting purchases of 2017 was a major fund manager’s acquisition of one of Bundaberg’s most popular sports and gaming venues.
This purchase took me by surprise. Hospitality purchases are rare for fund managers but this is one out of the box.
Bundaberg is the ninth-biggest town in Queensland, around 4.5 hours drive north of Brisbane, with a population of 70,000. It’s famous for its beef cattle and cane fields. (And, of course, Bundy Rum.) This sports club has been going since 1947 and has a bistro, sports bar, beer garden, gaming machines and large auditorium and conference centre. It’s a real community hub (exactly the kind of investment I like) with 25,000 members and it’s in a prime location surrounded by Harvey Norman, Bunnings and Bundaberg airport.
AND it’s on 8.2 hectares of land. A lot of that is sports fields, but there’s plenty of room to build.
The market-leading, ASIC-registered fund manager paid close to $11 million, with a view to developing a hotel on some of the remaining land and offering it to investors in a dedicated hospitality fund. Most funds like these offer minimum investment sizes in multiples of $100,000.
I think this is a smart purchase for a number of reasons. I like the location. I like the lease-back to this well-established club, and I like the plans to put a hotel on the site. The fund manager will offer this property prior to any development plans being submitted, so this opportunity is a long way from maturity. And, to be honest, I like the idea of owning part of a beer garden. A cold XXXX on a hot day? What could be a better investment?
Located alongside Coles Supermarket and opposite Harvey Norman, and also adjoining Bunnings the Brothers Sports club Bundaberg commands an outstanding location on an 8HA allotment at the entrance to Bundaberg on the Bruce Hwy.