John Singleton and Geoff Dixon sell Kinselas
Business partners and long-time mates Geoff Dixon and John Singleton have made a tidy profit selling the Kinselas hotel at Sydney's Taylor's Square.
Long-time hoteliers, the Kospetas family's Universal Hotel Group bought the pub for an undisclosed sum but the word around the traps was that it sold for $23 million.
Significantly, it’s the sixth asset that the Australian Pub Fund, run by former Qantas chief executive Mr Dixon, Mr Singleton and their silent partner, Mark Carnegie, have sold.
So far, the fund has made $120 million from the sales which have included the Marlborough Hotel in Newtown, snapped up by Matt Moran and Bruce Solomon’s Solotel Group for about $34 million, the Toxteth pub acquired by Mitchell Waugh's Public House Management Group for $21 million, the Peakhurst Inn for $22.5 million, the Bristol Arms for $19.5 million and the Como for about $5.5 million.
Australian Pub Fund director Matthew Beach said the sale of Kinselas was part of the fund's strategy to sell its pubs at capitalisation rates "that reflect their market value".
"[It also illustrates] our desire to deal at market value with experienced buyers," Mr Beach told the Sydney Morning Herald.
The sale leaves the pub fund with four hotels: the Unity Hall in Balmain and the Vic on the Park in Marrickville, Sydney, and the Stock Exchange and Elephant Arms in Brisbane.
The Universal Hotel Group is owned by the Kospetas family - a highly regarded, multi-generational family owned business run by Jim Kospetas, with his sons Harris and Steven.
The sale is part of the company’s expansion plans. It owns Sydney CBD's Civic Hotel, V Bar and recently opened Pitt Street Greek-themed bar and restaurant 1821.
Ray White's Asia-Pacific director of hotels, Andrew Jolliffe, who advised on the Kinselas sale says there’s still a high demand for pubs.
"Over the past two years, and we fully expect beyond, the market has supported both on and off-market transactions, highlighting both a strength and depth in terms of prices achieved, and pedigree of participating parties," Mr Jolliffe told the Sydney Morning Herald.
by Leon Gettler, May 23rd 2017
