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No Shortage of Good Property
June 2007
Despite what the rumor mill may say there is no shortage
of good hotel property in the Sydney CBD, metropolitan, coastal or regional
locations available for sale. The majority of these businesses have a smoking
option with the owners taking advantage of city yields of between 7.5% - 8.5%,
metropolitan yields of between 8.5% - 10%, fringe metropolitan yields and major
coastal landmark freeholds of between 11.5% - 12%.
It is expected that there will be no dramatic change in yields in the upcoming
period and yields for leaseholds ranging between 15% and 33% depending on the
length, terms and ownership of the poker machine entitlements.
Thus our current $225 million hotel sale reveals that if you are being told
there is no decent properties on the market then whom ever is telling you this
does not have a grasp of the current market.
John Williams
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