Barossa Motor Lodge poses immediate and ongoing investment return

Colliers International lists 3.5-star motel accommodation in Tanunda for sale

A high-yielding motel investment asset in Tanunda has hit the market in an opportunity for prospective buyers to take advantage of the South Australian wine region’s thriving tourist economy.

The Barossa Motor Lodge, located at 182-186 Murray Street and currently leased to proprietor Scrub Country Pty Ltd, is being marketed for sale through Colliers International, via expressions of interest closing March 2 at 4pm.

Investment Services director Oliver Totani, and executive Tom Isaksson, have been appointed to manage the campaign.

“We anticipate strong interest from the broader investment market, as they continue to chase strong yield,” Mr Totani said.

“Given the property’s location and purpose-built form, we are destined to also field interest from potential owner-occupiers, including motel and low-cost accommodation providers, who may look to gain control of the leasehold over time.”

The motel offers 3.5-star-rated accommodation, including 40 individual units, a central reception area, 160-person restaurant, bar, commercial kitchen, function room and manager’s quarters.

In addition, improvements include a landscaped garden and lawn area, in-ground pool with spa, tennis court, visitor parking for about 40 vehicles and a carport for each motel unit.

“The Barossa Motor Lodge is a rare motel investment opportunity in the world-renowned Barossa Valley, offering established facilities with potential for further development in this highly regarded international tourist destination,” Mr Isaksson said.

“Investing in this Tanunda address will grant the successful purchaser a premium location in one of Australia’s most popular tourist destinations and substantial improvements.”

Mr Totani said the property presented an opportunity to acquire a strong commencing net yield with the potential to add extensive value.

It has a current net income of $180,563.30 per annum, plus GST, and comes with a five-year lease, which commenced in December 2013, plus further four-by-five-year options to renew.

“The lessee is responsible for all outgoings, excluding state land tax,” he said. “As such, the fortunate buyer of the Barossa Motor Lodge will receive a solid high-yielding asset from day one.”

Within the world-famous Barossa Valley wine region, the motel is located about 80 kilometres north-east of the Adelaide CBD and close to more than 50 wineries.

“The Barossa Valley is to Adelaide what Chianti is to Tuscany,” Mr Totani said. “Tanunda is the largest township in the wine region, ensuring ongoing tourist demand for accommodation, with the Barossa Motor Lodge set to be a key beneficiary moving forward.”

“All in all, with approximately 1.315 hectares of residentially zoned land, this strategic land-bank underpins what is already a sound investment opportunity.”

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