Midway Point Tavern, No.2/6 Penna Rd, Midway Point. Picture: Supplied
One of the best-known hospitality venues on Hobart’s Eastern Shore has been listed for sale.
The Midway Point Tavern offers a fully leased licensed hotel freehold on a prominent 5157sq m corner landholding.
The site is zoned Local Business under the Tasmanian Planning Scheme, Sorell LPS, and is held across three certificates of title.
Elders Commercial director of commercial sales George Burbury said the underlying land component would form a central part of the investment case for many parties.
“You are buying a hotel investment with income in place, but you are also buying a large corner landholding in a growth location,” Mr Burbury said.
“There is scope for future development on the balance of the site, subject to council approval, and that optionality is not something you find in most leased investments at this price point.”
MORE: Sullivans Cove building for sale after Pub Banc collapse
Chill factor: $1.1m income, four decades of security
Building momentum: More buyers, deals and confidence
Billionaire’s private Tasmanian island is up for grabs
Midway Point Tavern.
Midway Point Tavern.
No.2/6 Penna Rd, Midway Point comprises a 920sq m licensed hotel and a separate 102sq m managers’ residence, together with about 70 onsite car parks.
The venue is leased to E&J Minns, trading as Midway Point Tavern, on a net lease returning $300,000 per annum plus GST before owner outgoings with annual CPI reviews and about 5.3 years of unexpired term. The tenant is responsible for all statutory outgoings, including land tax.
The tenant operates across four income streams: a public bar, a la carte dining trading lunch and dinner seven days, a Thirsty Camel-affiliated drive-through bottleshop, and a gaming lounge with 25 gaming machines alongside TasKeno and TAB facilities.
Elders Commercial Sales agent James Black said the site’s position on the Hobart–Sorell corridor is central to its appeal, with more than 150,000 vehicles passing the site each week via the Tasman Hwy.
Midway Point Tavern.
Midway Point Tavern.
Located 6km from Hobart International Airport and 22km from the Hobart CBD, the tavern sits on the direct route to Sorell, the Tasman Peninsula and the East Coast.
“The tavern captures commuter traffic, airport traffic and tourist trade, and it remains the primary hospitality venue serving the Midway Point residential catchment,” Mr Black said.
The surrounding growth pipeline adds further weight to the investment thesis.
The Peninsula at Midway Point — a new 201-lot subdivision — is minutes away, while a 160ha landholding at Sorell is expected to deliver up to 2000 new homes through to 2034.
“A venue that already holds a captive local trade is well placed as that population arrives,” Mr Black said.
Midway Point Tavern.
Elders Commercial anticipates strong interest from private investors, syndicates and hospitality operators across Tasmania and the mainland.
Mr Burbury said assets of this profile are seldom traded in southern Tasmania.
“Freehold hotels of this scale rarely come to market on the Eastern Shore” he said.
“What sets this one apart is the combination of a substantial corner landholding, an established trading business underpinning the rent, and a net lease structure.”
Expressions of interest close on September 3. Inspections are by appointment.