Sydney's metropolitan pub market continues to gain momentum, with a flurry of transactions pushing CBRE's total transaction value for 2015 in excess of $200 million.
CBRE Hotels transacted 15 hotel assets across the metropolitan Sydney market in 2015, including two of Australia's largest gaming transactions for the year - the Oasis on Beamish in Campsie for $39 million and the Oxford Hotel in Drummoyne for $35 million.
CBRE National Director of Pubs Daniel Dragicevich said the strong transaction pipeline was evidence of strengthening demand for freehold hotel assets in prime locations.
"Obviously the large gaming transactions were a highlight but we were also involved in deals in such city fringe suburbs as Darlinghurst, Paddington, Redfern, Balmain and Petersham. This reflected strong purchaser appetite levels across the asset class, reaffirming confidence is not just confined to the bigger end of town," Mr Dragicevich said.
CBRE Hotels also concluded a number of leasehold sales in metropolitan locations such as Chinatown and Westmead, as well as the only blue chip-tenanted freehold investment sale in New South Wales in 2015, with the sale of Northlakes Tavern in Charmhaven on the Central Coast.
"We see 2016 as another year of significant transactional activity as the fundamentals remain strong and the asset class continues to attract both current players and new entrants," Mr Dragicevich said.