Publican Iris buys into Kings Cross

Pub operator and developer, Iris Capital Group, has purchased a mixed use Kings Cross property that includes the Mercure Hotel, the Crest Hotel pub and popular night spot, Goldfish.

The Mercure, formerly Crest Hotel, was let go by Australand Property Group for $65 million. It incorporates 227 4-star accommodation rooms as well as Crest, a Top 25 Gaming pub with 30 EGMs. The property also comprises the Goldfish bar lounge area as well as over 1400 square metres of retail space including a bottle shop and leased retail TAB.

Iris Capital Group is making plenty of noise in the pub sector, recently acquiring PJ Gallaghers Drummoyne to complement its PJs Parramatta Hotel, also bought from Gallagher. 

The property was marketed through Mark Durran and John Musca of Jones Lang LaSalle Hotels (JLL) in an expressions of interest campaign that attracted international enquiries. 

Durran told TheShout that the sale of the Mercure Crest Hotel caps off a strong year for hotel transactions in Australia, "in excess of $1.4 billion".

The Potts Point venue boosts Iris's portfolio of mixed-use hotel projects, including the Clovelly Hotel and Cove Apartments, and the Hunters Hill Hotel and Maison Residences. 

Joint managing director of Iris, Sam Arnaout, was quoted in the media as saying the company will redevelop the hotel into a mixed-use property featuring residential and retail.

Source: The Shout, 10 December 2012