George Calombaris set to lead new restaurant at Sydney’s Oxford Tavern
Archibald Capital has an ambitious plan that could see celebrity chef George Calombaris open a new restaurant at Sydney’s Oxford Tavern as soon as Christmas. This initiative comes as the lenders aim to acquire more assets from embattled publican Jon Adgemis.
The debt investor is seeking to raise $28 million for a new hospitality fund to purchase the Oxford Tavern, now owned by Archibald’s Ben Madsen, along with five other venues previously operated by Adgemis’ Public Hospitality Group.
Adgemis is not mentioned in the information memorandum for the capital raise and is not expected to be part of the new venture.
The fund has appointed former AFL player Marc Murphy as general manager, with Calombaris taking on the role of culinary head.
Calombaris recently left his position at Hotel Sorrento in Victoria and was previously embroiled in a wage underpayment scandal in 2019.
The venues targeted for purchase include several freehold properties in Melbourne, including the Clifton Hotel, which houses Guy Grossi’s Puttanesca Osteria, and the Saint George, home to Karen Martini’s the Saint. Other properties in the acquisition include the Kurrajong Hotel in Sydney’s Erskineville, the Town Hall Hotel in Balmain, and the Oxford Tavern in Petersham.
Adgemis, who once presided over an empire of more than 20 pubs, bars, and hotels, is now involved in only a few Sydney venues in development, including a hotel planned for the former site of Noah’s Backpackers on Bondi Beach, purchased for $68 million in 2022.
Archibald announced that the acquisitions would be financed by two senior debt facilities arranged by Archibald Capital, totalling $92 million, along with $28 million raised through a new fund.
Of the $92 million, $47.8 million in debt would be allocated to the Sydney venues, with a loan-to-valuation ratio of 65 percent. This valuation is based on the properties' projected value after renovation completion, rather than their current worth.
Archibald has indicated plans to potentially build large hotels at the Clifton and Saint George properties.
"Generous height limits present an opportunity to convert the Clifton Hotel into an 11-storey mixed-use hotel and office tower," the company noted in an information memorandum.
Additionally, the fund plans to introduce “fresh F&B offerings from Melbourne hospitality stalwart George Calombaris” at the Vine Hotel in Collingwood.
Jonathan Jackson, 15th October 2024
