Broo Ltd is set to establish additional brewpubs in Delacombe and Sorrento, Victoria, under plans announced to the ASX on Thursday morning.
A wholly owned subsidiary, Sorrento Brewery Pty Ltd, has entered into an agreement to acquire a restaurant and bar hospitality business located on Ocean Beach Road, in the main street of Sorrento, Victoria.
“Following the completion of the acquisition, Broo intends to refurbish the 1500 sqm site and rebrand the hospitality venue as ‘Sorrento Brewery’,” the company said.
“Broo intends to install a microbrewery on the site, transforming it into another exciting brewery pub hospitality venue for Broo to retail its suite of beer products.”
Broo is acquiring the existing hospitality business as a going concern for total consideration of $30,000 plus stock valued up to $15,000, and will take over the existing leases at the site. Completion of the acquisition is intended to occur on 28 April 2017.
Also today, the company announced it had signed Heads of Agreement to lease a site in Delacombe, western Ballarat, which will accommodate another brewpub venue.
“The site sits within the new Delacombe town centre development and is adjacent to a six picture cinema and outdoor drive in, Woolworths and Kmart and fantastic specialty outlets opening in late 2017. 150,000 new residential properties will be constructed in the surrounding area,” said Broo.
“The site is currently under development but the company anticipates handover of the site in September 2017, with fitout to be completed and opening of this venue in or around November 2017.
“This operation will provide an opportunity for Broo to expand its hospitality model and make an initial step to retail its suite of beer products in close proximity to the Ballarat region where the company has secured land to develop a major brewery, as announced on 17 February 2017.”
Meanwhile, the company has completed initial refurbishment works at the Mildura Brewery and Pub, which is due to begin trading next week.
Production of Broo Premium Lager and Australia Draught has already begun at Mildura.