Sydney’s Oxford Hotel Sold to Industry Heavyweight Within Two Weeks
HTL Property announce the sale of the Oxford Hotel Drummoyne to industry stalwart, Arthur Laundy. The Oxford Hotel, sold for $42M within two weeks of hitting the market, and continues a run of sales for the sector which totalled close to $900M for FY19 and was separately highlighted by the sale of the Hotel Steyne in Manly in which Laundy was a shareholder.
The Hotel was sold by Dan Dragicevich, Andrew Jolliffe and Sam Handy.
“When we engaged HTL Property to market the asset we couldn’t have envisaged such a great outcome in such a short period of time. I have a very high opinion of Arthur and his family, and congratulate them on purchasing what will continue to be an exceptional asset for years to come” commented Oxford Hotel Vendor Michael Wiggins.
The Oxford Hotel occupies a high profile 974sqm corner site land parcel with a rare three street frontages, the largest of which fronts the arterial Victoria Road, and which sees traffic volumes of some 60,000 vehicles per day. Included in the sale is the adjoining retail building at 15 - 17 Lyons Road, which currently delivers $107,448 in rent per annum. The hotel enjoys limited local competition, operates in an exclusive trading catchment and surrounding suburbs are represented by some of Sydney's best gaming pubs.
The amalgamated site offers future redevelopment opportunities, underpinned by its B4 mixed-use zoning, 15m height approval and generous 2:1 FSR. “The vendors are illustrative of the value accretive opportunities that the pub market can present astute operators of all sizes. Having only bought their first Hotel in 2011, the Royal Exhibition in Surry Hills, they have now sold their second venue less than eight years later to one of the undisputed industry heavyweights, Arthur Laundy” said HTL Property National Pub Director Dan Dragicevich.
The robust business enjoys strong existing food and beverage centres with significant opportunity to amplify these revenue streams via a repositioned proposition, and the potential activation of a rooftop beer garden. Which, once introduced, would enjoy uninterrupted CBD, Sydney Harbour Bridge and ocean views.
“We are thrilled to be taking the keys to the Oxford. My son Craig was the local member when he was in parliament and our family have a long affiliation with the area” commented Arthur Laundy.
"In the post State and Federal election environment, and following the Reserve Bank’s cash rate repositioning to historically low levels, we are now seeing as active a transaction landscape as ever seen for quality hotel operations indexed to best in class gaming performance " concluded HTL Property Managing Director Andrew Jolliffe.
Source: HTL Property
