The Club Motor Inn has been sold for $4.5 million, nearly 18 months after owners the Narrabri Bowling Club entered into voluntary administration.
The Club Motor Inn occupies a 4,413 sqm high-profile corner site with Newell Highway frontage, and includes 30 motel sites, three-bedroom manager’s residence, inground pool, outdoor seating areas, commercial kitchen, laundry and 62 solar panels.
Narrabri lies in the heart of the Namoi Valley, around six hours’ drive and 568 kilometres north west of Sydney, in what is an agricultural and administrative centre that is being transformed into one of the state’s largest gas mining regions.
The Narrabri Gas Project could supply up to half of the natural gas used in the state’s homes and businesses, and plans are in place to construct a fertiliser plant making urea from the by-product of the gas mining.
The productive Whitehaven Coal underground mine is 28 kilometres south east from the town.
Manenti Quinlan & Associates managed the sale after being appointed by Alan Hayes of Hayes Advisory as deed administrator of the Narrabri Bowling Club. The club went into voluntary administration in April last year. It traded two businesses, the Club Motor Inn and the bowls club itself, Narrabari Sporties.
Queensland-based motel investors group CMI Property Pty Ltd, headed by David Jackson, were purchasers. The property was acquired on a yield of 13.5% on pre-COVID restricted trading figures.
The group are involved in several motel investments on the eastern seaboard and operate their properties with a management structure in place.
“The quality of the Club Motor Inn, along with its CBD location are quite rare in the market making this a prized asset,” Jackson said.
Ray Larkin of Manenti Quinlan & Associates said the expressions of interest campaign generated in excess of 48 genuine enquiries with 12 submissions to purchase the property.
“We are at a time in the market where demand is far outweighing supply and we have a number of well-funded and qualified purchasers ready to transact”.
The pubs sector’s run of transactional activity began on the eve of last summer. Initially centred around the Sydney metropolitan market, it has well and truly extended into the regional market.
Amongst recent deals are the 170-year-old Imperial Hotel in Maitland selling to Newcastle-based hospitality management firm Hunt Hospitality, and the Tattersalls Hotel freehold in Casino traded for $9 million.