April 8, 2026 Hospitality & Accommodation

Commercial Mortgages for a Brewery or Distillery, Explained

Owning the site you brew or distil from puts you in control of the production floor, the taproom and the capital you pour into drains, power and cold storage. Ardent Capital Group speaks with brewery and distillery owners about this move often, and this guide covers how a lender reads a production site, its plant and its excise cash flow.

Ardent Capital Group is a specialist in commercial mortgages for brewery and distillery operators across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy.

Access finance from $100,000 to $10,000,000+, matched to your production and property plan.
Over $500,000,000 in funding facilitated across a decade for more than 1,000 borrowers.
Dedicated commercial mortgage expertise for breweries and distilleries, including owner-occupier, investment and SMSF structures.
We service Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.

Owning vs leasing your brewery or distillery

A brewhouse or still is only half the spend. Fit-out is capital intensive and highly site specific. Floor falls, epoxy, bunding and trench drains, trade waste systems, glycol chillers and insulated lines, steam boiler or direct fire, three phase power upgrades, cold rooms, CO2 and nitrogen systems, grain handling, kegging or canning lines, bonded storage and barrel racks all tie you to the building. You also manage planning approvals, liquor licence settings, odour and noise controls, and food safety compliance. Owning the freehold gives control over the asset you continue to invest in, and repayments build equity in a tangible property.

Location matters. A production site with a taproom relies on customer access, parking, tourism flow, proximity to hospitality strips, and industrial zoning that permits brewing and distilling with retail. A move mid-lease can interrupt distribution rhythms, taproom revenue and community presence, which is one reason owners value holding the site.

Main drivers for ownership:

Control over trade waste, power and services, so capacity upgrades and new tanks happen on your schedule.
Stability for a taproom or cellar door, so you do not rebuild bars, kitchens and cold rooms for a new landlord.
Repayments that build an owned asset, often comparable to rent in suitable markets.
Ability to leverage your equity later for tanks, packaging or an expansion.

Buying may not suit when your lease horizon is short with likely relocation, when you plan a new greenfield production shed, or when capital would materially lift earnings in the short term, for example a canning line, sales hires or route-to-market investment. The decision sits with you.

Our brokers work the full lender panel for a brewery property loan, not a single bank.

What a brewery or distillery commercial mortgage looks like

Deposit and LVR. A brewery or distillery freehold going concern is typically funded to around 55 to 65 per cent of value, so a deposit of 35 to 45 per cent is common. The site is part industrial and part hospitality, and lenders discount specialised, operator-dependent income rather than gear it like a standard office or warehouse.
Loan term and structure. Terms on a specialised hospitality asset commonly run to about 15 years, shorter than the 25 to 30 years a standard commercial or residential borrower expects. Repayments can be principal and interest for steady amortisation, or interest only for a defined period, usually up to about 5 years, when a taproom build or a capacity upgrade is consuming cash flow.
Security and serviceability. The property is the primary security. Lenders assess business financials, margins after excise, revenue mix between wholesale and taproom, seasonality, and debt coverage. Some will scale addbacks for non-cash costs and normalise growth with signed supply or venue contracts.
Owner-occupier treatment. Lenders generally favour an owner-occupier purchase. Occupying the site and trading from it provides a clearer link between business performance and the security property.

Common ways to hold the property

Many brewery and distillery operators hold the freehold in a separate entity, often a company or a trust, that leases the premises back to the trading business at a commercial rent. A lender then reads that inter-entity rent as the serviceability line, and the split keeps production risk apart from the real property. This is how the lending is commonly arranged around structures operators already use, not a recommendation on how to run your business.

An SMSF route is also common. Commercial premises generally qualify as business real property, so a self-managed super fund can hold the building under a limited recourse borrowing arrangement and lease it to the operating company at market rent. Gearing is lower than a standard purchase, a bare (custodian) trust holds title, personal guarantees still apply and the fund needs a liquidity buffer. Ardent handles the finance and which lenders take this security and on what terms, and your accountant and SMSF adviser set up and confirm the fund and tax detail.

How your application is assessed

Business financials and trajectory, including management accounts, margins net of excise, wholesale versus taproom split, average sale price, and inventory profile.
Serviceability, typically a debt service coverage ratio, stress testing interest rates and sensitivity to excise timing and seasonal events.
The property and its valuation, including permitted use for brewing and distilling, planning approvals, trade waste and environmental controls, noise and odour mitigation, power capacity and access.
Deposit and equity position, including cash, retained earnings, equity in other property and the impact of any grants or landlord contributions.
Lease and occupancy, if buying with a leaseback or partial tenancy, including market rent, term and options.
Compliance and risk, such as hazardous area zoning, bonded storage, fire safety, ventilation, and insurances.

A specialist broker who understands brewhouses, bonded storage, excise cycles and taproom revenue patterns makes lender selection and structure more precise for this sector.

How this might look in practice

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run.

Profile: regional brewery with a 15 hL brewhouse, active taproom, wholesale to 120 venues, planning to add a small still and expand cold storage.
Premises: mixed-use industrial unit with corner exposure at $2,800,000, currently leased to the brewery with two years remaining.
Options that could be mapped:
- Owner-occupier purchase in a holding company or trust, leased back to the trading company at market rent, targeting around 55 to 65 per cent LVR, with the deposit drawn from cash and equity in a residential investment.
- SMSF purchase using a limited recourse loan, accepting a lower LVR, with the lease set at market to the trading company and the cash impact inside super assessed.
- Holding the current lease, banking cash, and revisiting a greenfield build with construction finance in 12 to 18 months.
Structures that could be considered:
- A 20-year principal and interest mortgage with an initial 24-month interest only period during a glycol upgrade and canning line commissioning.
- Split facilities: a property loan sized around $1,540,000 to $1,820,000 at 55 to 65 per cent LVR on settlement, equipment finance of $650,000 for tanks, glycol and canning, and a $250,000 working capital line for excise and inventory.
What each path could look like:
- The owner-occupier path stabilises the taproom location and sets rent deliberately inside the group, with potential to revalue and release equity for a barrel program after 18 to 24 months of trading.
- The SMSF path can suit owners with stronger super balances and a long horizon, with tighter cash management and lower gearing.
- The wait path preserves cash and optionality if a larger site becomes available, while rent escalations and fit-out sunk costs continue under a landlord.

How we would approach it: we would map the ranges, structures and repayments against the profile and take it to the lenders that suit a production and taproom site. The figures above are illustrative, not confirmed outcomes, and the decision stays with the owner.

Finance types for brewery and distillery owners

Asset finance for brewhouse, tanks and packaging. Fund brew kettles, fermenters, bright tanks, a glycol system, a canning or kegging line, a small still and quality lab gear through brewery equipment finance without tying up working capital.
Fit-out and refurbishment finance. Cover trench drains, trade waste, bunding, cold room expansions, taproom bars, kitchens and seating, and power upgrades sized for growth.
Working capital loans. Use working capital for a brewery to smooth excise cycles, pre-buy malt, hops, barrels and packaging, and hold stock for seasonal releases and festival demand.
Business overdraft. Manage cash gaps from wholesale terms, venue shutdowns or event swings, secured against the business or property.
Refinancing and debt consolidation. Restructure multiple equipment schedules and short-term facilities into a clearer profile with improved cash flow.
Construction and renovation. Finance a greenfield shed, extend a production bay, add mezzanine storage or expand bonded areas, subject to DA and builder milestones.
Business or premises acquisition finance. Buy your freehold from the landlord, acquire a neighbouring unit for growth, or buy into a brand with complementary distribution.

Owning the premises can free equity for future production assets, and a refinance at the right time can consolidate facilities and simplify covenants.

A broker who knows brewery and distillery property

Ardent Capital Group arranges and structures commercial mortgages for brewery and distillery operators. We shape the finance around how you plan to hold and occupy the property, align the lease and rent settings, and coordinate the right mix of property and equipment facilities.

We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas. We have helped facilitate over $500,000,000 in funding over a decade for more than 1,000 borrowers. This is the kind of purchase where the structure and the strategy matter as much as the rate, and we give brewery and distillery owners clear advice on both, so the finance supports the wealth you are building and the years ahead. Talk to us when you are ready.

Your questions answered

How much deposit do I need to buy a brewery or distillery premises?

Typical deposits range from 35 to 45 per cent of the purchase price, aligned to a 55 to 65 per cent LVR on the freehold going concern, with the strongest trading records and properties sitting at the higher end.

Can my SMSF buy the building and lease it to my brewing or distilling company?

Yes, commercial premises generally qualify as business real property. An SMSF can purchase the building and lease it to your trading company at market rent, noting lower gearing, limited recourse rules and cash flow discipline inside super. Your accountant confirms the super and tax detail.

Will lenders value my fit-out and stainless in the property valuation?

Valuers focus on the real property. Fixed trade waste works, power upgrades and some fixtures may support value, but movable plant such as tanks and packaging lines are often excluded and better funded under asset finance.

Do lenders accept a mixed site with a production area and a taproom?

Yes, provided zoning and approvals allow both uses. Lenders review permitted use, car parking, fire and acoustic compliance, and the revenue split between hospitality and production.

How do excise timing and seasonality affect serviceability?

Lenders test debt coverage with allowance for excise cycles, wholesale payment terms and seasonal peaks. Clean BAS lodgements, excise compliance and consistent margins strengthen the position.

Can I buy with little cash if I have equity elsewhere?

In some cases equity in residential or other commercial property can support a higher effective LVR or a separate equity release, and our team can explain the structures that allow this.

Can I fund tanks and a canning line alongside the property purchase?

Yes, common structures pair a commercial mortgage for the freehold with asset finance for stainless and packaging, and a working capital line for excise and inventory, timed to commissioning.

Written by

Nick Chong

Managing Director, M.AppFin, Dip. Mortgage Mgmt

Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.