Holgate Brewhouse founders Natasha and Paul Holgate outside their Woodend pub in 2023. Picture: David Caird
The home of Victorian craft beer trailblazer Holgate is up for sale as the family behind the hospitality success story seeks to offload its Woodend brewhouse and hotel.
Founders Paul and Tash Holgate have listed the freehold to the Macedon Ranges landmark, which is expected to fetch upwards of $5m.
They plan to continue running their 25-year-old brewing, pub and accommodation business under a new leaseback arrangement.
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The property has a Commercial 1 zoning and significant High St frontage.
A taproom and visitor centre was completed in 2020 as part of an $8m redevelopment, with help from a $1.5m state government grant.
The prominent 2295sq m property at 79 High St, Woodend, combines an 1896 hotel with a state-of-the-art 7 million-litre capacity production facility.
Converted to tinnies, that equates to up to 18.666 million cans of beer.
An $8m development completed in 2020 added a modern brewing and packaging operation, discovery centre and taproom.
Mr Holgate said not many business of a similar size and nature would own the commercial property where they operated.
“It’s a great position we are in to be able to realise the value of this asset via the sale of the freehold component,” he said.
“It will remain business as usual for our brewing, production and our tourism operations as the transition back to being long-term lessees enables us to focus on the businesses and growth initiatives.”
The original bar retains a traditional feel.
The venue is popular with locals and tourists alike.
HTL Property Victorian director Scott Callow and investment sales Daniel Ryan are calling for expressions of interest by June 17.
Mr Callow said the freehold would be sold subject to two separate initial 10-year leases, one over the brewery and the other over the hotel, extending to 30 years including options.
The combined income is about $400,000 with room for future annual growth.
Mr Callow said the property was attracting both Melbourne-based buyers and those within the region who know the brewhouse well.
“The brand Holgate itself has proven very popular in the craft beer market so it’s a combination of that and the popularity of Woodend itself, being easily accessible from Melbourne,” he said.
Holgate Brewhouse founders Paul and Tash Holgate, who started out brewing in Paul’s shed 25 years ago.
Brewery will continue as normal on site as part of a leaseback agreement.
“With the rail and everything going up to that part of the world, it’s constantly growing.
“The brewery itself is super hi-tech – not that you are necessarily buying the equipment – but it’s impressive and a state-of-the-art operation and that shows you the quality of the people behind it.”
He said there was big shift to commercial investments currently, and Victoria’s hotel and tourism freehold market had become a magnet for capital.
“There exists a distinct ‘cachet’ associated with owning a landmark regional freehold like this being one which offers a secure, long-term income profile that comfortably outpaces standard bank rates,” he said.