North-Western Sydney freehold Pub sold for $18 million
In what is already the eighth significant hotel sale of the new Financial Year, the Royal Hotel in Richmond has been sold to industry stalwart Peter Wynne.
Wynne, who last year exited the highly popular Martin Place Bar in the Sydney CBD so as to make way for a new metro train station, has been actively pursuing capital redeployment opportunities and moved deliberately when the opportunity arose. The Vendor for the hotel is well respected publican Mal Russell, who is said to be exiting the industry.
“Following our departure from the Martin Place Bar, myself and my wife Karen have conducted due diligence on numerous properties, however we weren’t prepared to transact until such time as we had found the appropriate re-entry point through which to reapply the skills we have collectively garnered over decades in the hospitality industry. In the Royal Hotel at Richmond, we have found such a property” advised successful purchaser Peter Wynne.
“Our family’s tenure in Richmond has unfortunately come to an end, but it has been a thoroughly enjoyable journey. We thank the local community and also congratulate Peter and Karen on a fantastic purchase. As I always say, all roads lead to Richmond!” added outgoing vendor, Mal Russell.
HTL Property's Dan Dragicevich and Sam Handy negotiated the discreet off-market transaction, with the deal following some of their other recent sales including the Friend in Hand Hotel (Glebe) and the Oxford Hotel (Drummoyne).
The Royal Hotel is strategically situated on a 1,760sqm site within the main commercial/retail precinct of Richmond. It adjoins a large council car park which services Dan Murphy's and a Coles Shopping Centre. Richmond train station is also immediately adjacent the hotel. The hotel features a valuable 3am liquor licence, with 'early opener' flexibility and ownership of 29 gaming machines.
“The Russell family have established the Royal as a true focal point of the Richmond community in their 10 years of ownership. This traditional owner operator style is something they share with the incoming purchaser who, given their undisputed pedigree across both food and beverage disciplines, will no doubt build upon the fantastic legacy they are inheriting” advised HTL Property National Pubs Director, Dan Dragicevich.
Following release of its annual market report this week, HTL Property records in excess of $900m in annual hotel sales for FY19, with a prediction of the further tightening of freehold yields.
“Our on-record submission for the past two years provides for a view which supports the contraction of yields along Australia’s East Coast, and the market barometers we religiously track all suggest to us, convincingly, a foreseeable future continuum of this guidance” concluded HTL Property Managing Director Andrew Jolliffe.
HTL Property, 17th July 2019
