Eumundi Group Limited ("Eumundi"), Enters into Contract for the Purchase of the Land and Buildings of the Court House Hotel, Murwillumbah on the Nsw Far North Coast, Through A Subsidiary Eumundi Property Group Pty Ltd
July 09, 2021 at 03:27 am
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Eumundi Group Limited ("Eumundi"), announced that it has entered into a contract for the purchase of the land and buildings of the Court House Hotel, Murwillumbah on the NSW far north coast, through a subsidiary Eumundi Property Group Pty Ltd. (the "Group"). The purchase is unconditional, following completion of commercial due diligence. Centrally located in the main street of Murwillumbah, the two-story Court House Hotel occupies an 898 sqm block, offering public bar, bistro with alfresco dining, beer garden, gaming room with 21 gaming machines and 14 accommodation rooms. The investment comprises the acquisition of the hotel land and building assets. The hotel business will be owned and operated by former Dixon Hospitality stakeholder, Michael Dixon, under the Athena Hospitality Group banner ("Lessee"). The Lessee will be taking a lease from the Group for an initial term of 15 years with four further options of 10 years each. The lease is a triple net lease, with all outgoings and the costs of capital and structural repair and maintenance payable by the Lessee. The purchase price of $6.0 million for the land and buildings represents an initial net cap rate of 6.25%, with annual rises of 3%. Rent will be reviewed to market at the commencement of the 6th year of the lease, with a minimum rent increase on the prior year of 3% and a maximum increase of 15%. The lease is supported by a three-month bank guarantee, plus directors' guarantees. The purchase will be funded through approved facilities from Eumundi's bankers, the NAB. The Group will have net borrowings of approximately $34.4 million post the transaction. The bank facilities are secured against the Court House Hotel and the Group's existing assets, the Ashmore Tavern, The Plough Inn and the Aspley Shopping Centre assets, which include the business of the Aspley Central Tavern. It is anticipated that the acquisition will make a net contribution of approximately $0.26 million to the pre-tax result of the Eumundi group in the first year of ownership.
Eumundi Group Limited is engaged in the operation of the Ashmore and Aspley Central Taverns and the holding of investment properties, predominantly in Queensland. The Companyâs segments include Hotel operations and Investment property operations. The Hotel operations segment sells packaged alcoholic beverages through its retail outlets, sells food and alcoholic beverages on-premises through bars and restaurants and operates licensed gaming venues. Investment property operation segment owns and leases investment property assets to retail tenants. Its hotels include Ashmore Tavern, Aspley Central Tavern, and Quench Liquor. Its properties include Aspley Property and Plough Inn. The Aspley investment property is comprised of the Aspley Shopping Centre and Aspley Arcade Shopping Villages. The Plough Inn investment property consists of the head lease over the standalone hotel asset and is located in Brisbaneâs premier South Bank lifestyle and cultural tourist precinct.
Eumundi Group Limited ("Eumundi"), Enters into Contract for the Purchase of the Land and Buildings of the Court House Hotel, Murwillumbah on the Nsw Far North Coast, Through A Subsidiary Eumundi Property Group Pty Ltd