THE freehold of the Ingleburn Hotel in Sydney’s south western suburbs has been offered for sale for the first time in 60 years.
Centrally located within the up and coming suburb’s shopping centre, the hotel features a modern bar, indoor and outdoor dining with three outdoor areas, 12 accommodation rooms and a drive-thru bottle shop with an additional 23 parking spaces.
The Ingleburn Hotel is being marketed by JLL’s John Musca and David Mathews, and is going under the hammer 14 November at Cooley’s Auction House CBD.
Offered with an existing lease, the hotel has 27 gaming entitlements and permits and consistently ranks among the the state’s top 80 gaming venues. JLL suggests that when benchmarked against similarly ranked Sydney gaming hotels, the Ingleburn delivers over $3 million annually in net gaming profit.
According to Musca, it offers a standout investment opportunity for property owners or hoteliers with a medium-term operating outlook, with potential to improve the yield from 3% to around 10% and increase return on equity from 9% to 28% in the short-term at the expiry of the tenancy.
“There is the opportunity to restaple the asset within a six-year investment window. With the current lease expiring in 2025 it provides the option to sell a new lease or enable a new owner to take control of operations,” Musca said.
Musca said comparable sales show the hotel was worth an estimated $40 million minimum when the lease expired, reflecting a potential $10 million uplift.
There is also potential to develop the 2,239 sqm property given its location within the proposed Ingleburn Precinct Plan.