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Market Interest in 2008
March 2008
During the first two months of 2008 there has been a renewed interest in the
market from owner occupiers and long term hoteliers that have sat on the side
line over the past 9 months in particular waiting to assess the introduction of
non-smoking and not wishing to compete with the capital markets funds such as
ING or NLG.
With a settlement now of post non-smoking results showing that bar trade has not
fallen away and actually is still trading at the prior 1 July levels or better,
while gaming is down still by an average of 15% this has led to renewed
interests in the market by more traditional purchasers.
It has also seen the return of the 3 and 4x multipliers for lease terms of
between 10 and 20 years.
It is predicted that interest will remain strong in the market and once buyers
are satisfied that interest rates have peaked or plateaus then the interested
parties will be successful purchasers.
Bligh Williams
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