Eastern Suburbs hotel hits the market
A Bondi Junction pub has been listed for sale, continuing a watershed quarter for Sydney's Eastern Suburbs.
Adjacent to Westfields and Myers in Bondi Junction, the Tea Gardens hotel is considered a prime asset enjoying heritage status and earnings in line with the best in the area.
Ray White Hotels (RWH) has secured exclusive representation for ALG (Australian Leisure Group) for the landmark hotel, having previously managed assets for the company in New South Wales and Queensland.
RWH NSW managing director Andrew Jolliffe said the rarity of such a blue-chip listing and its potential in a densely populated foodie district will attract a lot of interest.
"The Tea Gardens enjoys its position in the top echelon of freehold hotels nationally. The annual profit, delivered regularly, puts it firmly in the A-Grade asset class, irrespective of category, which means it enjoys similar status to the Coogee Bay Hotel, the Golden Sheaf in Double Bay, the Newport Arms and Watsons Bay hotels," he said.
Sydney’s Eastern Suburbs has seen a flurry of pub transactions in recent months, with major operators entering the area for the first time and stalwart properties changing hands for the first time in decades.
Some of the new and sophisticated investment groups that recently have been strategically building portfolios in key areas are likely to be very interested in the Tea Gardens – particularly given its status and the barriers to competition locally.
"The revenue profile of the Tea Gardens is such that no one revenue stream is dominant, so the blend of trade is exceptional,” Jolliffe said.
"Assets like [this] are iconic for a reason. The number of hotels in the broader area is comparatively low to others, and the sheer volume of people in and around the hotel is the very reason assets of this grade are seldom traded."
The hotel boasts over 800 square metres over two levels, with a balcony, large kitchen and 30 gaming machines. It enjoyed a significant jump to #88 in the latest list of top-performing gaming venues in NSW.
Jolliffe could not comment on the vendors except to say they are an “interstate investment group” that has owned the property for the “typical investment cycle” of seven years.
Source: The Shout - 16 April 2014
