Endeavour Group begins its pub acquisition strategy with Terry Hills Tavern

The Endeavour Group together with property funds group Charter Hall have made their first substantial pub group purchase, acquiring the Terrey Hills Tavern in Sydney for about $39.8m.

The Endeavour Group will take the leasehold interest, while Charter Hall will pay $26.3 million for the freehold, with a 15-year lease to Endeavour covering the remainder of the cost.

This is the Endeavour Group’s first pub purchase since parting ways with the Woolworths supermarket empire and signifies its intent to go on a pub buying spree and shake up the national pub market.

The man behind Endeavour, Gold Cost billionaire Bruce Mathieson intends to join Justin Hemmes and the Laundy family in a mass acquisition of hospitality venues.

Mathieson has said he has been constrained by his partnership with Woolworths and is now free to pursue pub purchases with far more vigour.

The Endeavour Group, which runs hotel, poker machine and liquor retail businesses and includes Dan Murphys and BWS liquor chains, separated from Woolworths in June in what was one of the biggest floats of the year, valuing Endeavour at approximately $11 billion,

“We recognise that an opportunity to acquire a Sydney metropolitan hospitality asset of this land size and asset quality is rare and we are pleased to be working with ALH on strategically growing the portfolio while also deepening our partnership,” Charter Hall chief David Harrison said.

“This acquisition is in line with our portfolio strategy that seeks to extract value from low-risk, long-term leased property operated by best in breed tenant customers such as ALH,” he said.

The Terrey Hills Tavern produces annual revenues of more than $10 million and is on a landholding of 15,870sqm.

Irit Jackson, 15th July 2021