Hospitality investment manager and operator Harvest Hospitality (formerly Harvest Hotels) has sold The Milestone Hotel, Dubbo and The Aussie Inn, Adelaide for a combined value exceeding $50 million, delivering strong returns to its investors. The sales of the Milestone Hotel held in Harvest Pub Fund 1 (HPF 1) and the Aussie Inn held in Harvest Pub Fund 3 (HPF 3) highlight the success of Harvest’s investment thesis of adding value to pubs in high growth areas and coincide with the launch of its two new hospitality investment funds.
The sale of The Aussie Inn, located in Hackham, South Australia, underscores the strength of SA’s hospitality market. Brokered by Terry Board of TJ Board at an undisclosed sale price, the transaction is expected to settle in October 2025. During its three years of ownership, Harvest made substantial operational and capital improvements, driving both the revenue and reputation of the venue. In 2024, the drive-through bottleshop won IBA’s Retail Manager of the Year and last year’s major redevelopment led to The Aussie being dubbed the “Super Pub of South Adelaide.”
Group CEO and Harvest co-founder Chris Cornforth said: “The Aussie Inn was one of our first purchases in the Adelaide Pub market. The successful implementation of our strategy has delivered significant revenue uplift which in turn has produced a great return for our investors. Overall, our team is proud of the venue and the experiences we’ve created for our patrons and the local community over the past three years”.
HPF 1 has sold the Milestone Hotel in Dubbo on a freehold going concern basis. The transaction was brokered by JLL’s Kate MacDonald and Ben McDonald, and is expected to close in December 2025.
“During Harvest’s ownership of The Milestone, we’ve focussed on elevating the dining experience and building a loyal customer base. The operational improvements we have made together with some minor capital works has improved the venue’s appeal and made the asset an attractive acquisition target.”
“Both The Aussie and The Milestone have been fantastic pubs to have as part of our portfolio and we look forward to seeing what’s in store at both venues under new ownership,” added Chris.
The sale of these assets is part of the continuing execution of Harvest’s investment strategy in relation to HPF 1 and HPF 3. In addition to the sale of optimised venues, Harvest will continue to execute operational and capital improvements at its remaining assets prior to selldown.
“Our focus has always been on creating great experiences, enhancing pub performance, delivering strong returns for investors, and driving Harvest’s growth. Selling these optimised assets demonstrates our delivery of that strategy. The sales also complement the launch of our two new funds which will enable us to expand our core pub business.”
These funds are:
Harvest Hospitality Opportunities Fund: Structured to deliver attractive total returns over the medium term, this closed-end fund will invest in both freehold going concern and leasehold-only assets. The fund is targeting $200 – $300 million in assets under management over a 5 – 7 year term, with an IRR target of 15% – 17%+ per annum (post fees). Distributions will commence following a 2 – 3 year deployment period and are expected to be primarily driven by the realisation of individual assets.
Harvest Hospitality Income Fund : Structured to deliver sustainable and regular cash distributions to both retail and wholesale investors, this open-ended fund leverages Harvest’s operational platform to invest in freehold going concern, leasehold-only and freehold-only assets. The fund is targeting $500 million in assets under management over the medium term with an IRR target of 10 – 12% per annum (post fees), including a distribution yield of 6 – 8% per annum (post fees). Distributions will be paid quarterly, and the fund will offer periodic redemption opportunities from year 3 onwards.
“These new funds are designed to give investors access to well operated, profitable assets while addressing their specific investment objectives of capital growth and income generation. We will begin a capital raise for these two funds in the coming weeks and welcome any parties interested in hospitality assets to get in touch with us,” concluded Chris.
