Iris pays $20m for Bondi hotel

IRIS Capital has purchased the Cock and Bull Hotel in Sydney’s Bondi Junction for more than $20 million as the pub and hotel group continues to eye an initial public offering.

Iris chief executive Sam Arnaout said the acquisition capped a year of growth for the private company, which he says has doubled in value from about $250 million to $500m.

The group has expanded through major developments and new acquisitions.

Mr Arnaout said Iris was negotiating the purchase of two more Sydney hotels and would look for further growth before pursuing a float.

“The IPO is absolutely on the radar for the group and it is something we are continually exploring and working towards,” Mr Arnaout said.

“We are looking to create more size before we will (pursue) that float option.”

Mr Arnaout said the group bought the Cock and Bull Hotel, also known as the Grand Hotel, with plans to develop apartments and retail space on the adjoining 2100sq m site.

“But true focus right now is to reposition the venue and work with what is already a strong trading platform in the hotel,” Mr Arnaout said.

CBRE’s Daniel Dragicevich handled the deal.

Iris has undertaken four redevelopments this year.

Its biggest project was the $100m redevelopment of its Hunters Hill Hotel, which includes 52 apartments, 1100square metres of retail, 127 carpark spaces and an extension of the hotel itself.

The group has also received stage one approval for the revamp of the Quest Hotel in Sydney’s Potts Point.

Iris also owns Sydney pubs the Clovelly Hotel and the Goldfish in Kings Cross.

Source:  The Australian - 4th December 2014 - Greg Brown