Hunters Hill Hotel and Tiger Bar sold for $65 million
In what amounts to the biggest pub sale this year, two popular Sydney hotels have been sold for a combined $65 million.
The pubs are the Hunters Hill Hotel on the North Shore and the Tiger Bar Hotel Hurstville in the southern suburbs.
The Tiger Bar Hotel, which sits next to the Hurstville bus and train stations was snapped up by Sam Arnaout's private investment arm and development firm Iris Capital.
The pub, which includes a public bar, TAB, gaming room and upstairs restaurant and is a consistently high-ranking NSW gaming venue, will add to a portfolio which includes The Colombian Hotel in Darlinghurst and The Grand Hotel at Bondi Junction.
It was purchased from pub operator Gallagher Hotel Management run by Patrick and Angela Gallagher who paid about $28 million for it in 2015.
Meanwhile Iris Capital sold the recently renovated Hunters Hill Hotel to Gallagher Hotels which already has a portfolio of pubs including the P.J. Gallagher's chain, the Belgian Beer Cafe at The Rocks and Jackson on George in the CBD.
The Hunters Hill pub comes with a separate 120 bay carpark on a 5000 square metre site. And it also has approval to develop luxury apartments above.
JLL Hotels & Hospitality Group national director John Musca, who negotiated the sales, said the deals represented the biggest pub sale in Sydney in the last six years.
"Much like the Oaks Hotel in Neutral Bay and the Golden Sheaf Hotel in Double Bay the Hunters Hill Hotel is a cornerstone, integral community establishment and a truly generational asset the likes of which are rarely traded", Mr Musca told the Australian Financial Review.
He said the sales come at a time when the hotel real estate market is hotting up with Redcape group planning a $700 million sale of their 26 venue hotel portfolio to Moelis Capital, John Singleton's Australian Pub Fund continuing on its portfolio sell down and KKR, debt provider to the ill-fated leasehold Dixon group, reportedly seeking capital solutions after IPO plans were recently put on hold.
by Leon Gettler, June 28th 2017
