|The Central Cobar Motor Inn is the leading property in this key mining town. Built only 15 years ago, the existing tenant has built a strong business that will provide stable returns for investors.|
Cobar is a key regional and mining centre, with mining focussed around gold rather than coal. Due to the distance from other towns, it is a natural stopping off point for business travellers.
The Central Cobar Motor Inn was built in 2005 and offers the best accommodation in the town, with a solid 4 star standard. As such, it captures the high value business market. The tenants have been in place for nine years, and as part of the purchase they agreed to extend their initial option on the lease to ten years, with thirty overall. The entry yield of 10% is very attractive for the area and for such a good property, which we would expect to have limited capital expenditure needs in the near future.