Experienced pub operator and investment fund manager, Harvest Hotels will take over the reigns to Queanbeyan’s Jerrabomberra Hotel in mid-April 2024. The acquisition is the first to be made under the newly merged Harvest Pub Fund, which is currently comprised of eight high quality, large format pubs in high-growth regions across NSW.
Situated on 2,759m² opposite the Jerrabomberra Village Shopping Mall and featuring a drive-thru bottleshop, bistro, sports bar and 30 machine gaming room, sale of “The Jerra” was brokered by HTL Property’s Daniel Dragicevich and Sam Handy.
“The Jerrabomberra Hotel is an A-grade regional venue that presents all the intrinsic fundamentals that astute purchasers are drawn to. Exclusive catchment, high foot traffic positioning and ample parking are strategic trading cornerstones which enable successful trading longevity” advised HTL Property Director, Sam Handy.
The Jerra will join Harvests’ portfolio as the thirteenth venue under current management and the company’s eighteenth acquisition in total since its inception in 2014.
Founder and Managing Director Chris Cornforth said Harvest Hotels has been exploring prospects in the Queanbeyan Local Government Area for a number of years.
“We’ve previously owned and operated in pubs in the nearby community of Yass so are well acquainted with the broader region, and in meeting all our required demographic metrics, Queanbeyan has been a target area of ours for a long time,” he said.
Harvests’ acquisition strategy remains steadfast with the newly merged Fund seeking underdeveloped pubs at around a 9 per cent cap rate in targeted high-growth regions which allows for strategic capital and operational improvements to generate a 19 per cent IRR with quarterly cash distributions of 6 to 7per cent paid back to investors.
“Having recently consolidated two funds to create Harvest Pub Fund, we’ve been extremely vigilant in making sure we secure properties and businesses that not only align with our strategic plan and can generate a strong return for investors, but that also complement the existing high-quality assets that we have under management,” added Chris.
“The Jerra fits the Harvest mould well and we’re confident that the implementation of our operating systems, launching our Harvest Gold loyalty program and building meaningful relationships with the community through our partnerships program are just some of the ways we’ll create good experiences for existing locals, new customers and those just passing through while generating results for our investors.”
