Sydney’s grand dame of Oxford St sold after 30 Years - HTL Property
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Sydney’s grand dame of Oxford St sold after 30 Years - HTL Property
Sydney’s Courthouse Hotel has sold to Moelis Australia Hotel Management by HTL Property's Dan Dragicevich, Andrew Jolliffe and Sam Handy.
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HTL PropertyCourthouse hotel Oxford Street Sydney.
HTL Property confirms the sale of Sydney’s stunning Courthouse Hotel to Moelis Australia Hotel Management.
MA Hotel Management (MAHM) confirmed they have exchanged contracts to acquire the Courthouse Hotel, Darlinghurst, for $22.0 million, excluding transaction costs.
The off-market sale, participated in by a determined and very capable selection of targeted buyers, has resulted in an unconditional Exchange of Contracts to one of Australia’s leading and most agile hospitality groups.
Exclusively engaged by the hotel’s long term owners and represented by Dan Dragicevich, Andrew Jolliffe and Sam Handy, HTL Property advises that the interest in acquiring the 4 level main property and adjoining commercial property was both deliberate and active.
“The Courthouse has to be one of the most recognisable pubs in Sydney and having been in the same hands for over 30 years, the uniqueness of the offering attracted significant interest from a broad range of buyer profiles.
The widely held view is that Oxford Street is in for a renaissance in the years to come as astute investment houses and developers seek a foothold in what will be the city’s only 24-hour precinct following the reshaping of the lockout laws” advised HTL Property National Pubs Director, Dan Dragicevich.
MAHM CEO Dan Brady said, “The acquisition of this historic venue in the heart of one of inner- Sydney’s most diverse and dynamic precincts presents an exciting opportunity.
The acquisition is being funded through a new Moelis Australia Courthouse Fund, enabling unique access to this specialist asset class; a freehold going concern asset with strong underlying land and property value.
The investment platform allows for leading levels of governance and capital management with the innovative funding model providing access for both Moelis client investment and operational managers to invest in the hotels they operate creating material stakeholder alignment.
The landmark community hotel has been under the same ownership since 1990 and will benefit from MAHM’s experience as a manager and operator of large hotels and stewardship of major refurbishment programs. This creates the opportunity for the Courthouse to re-establish its role as a community hub and central meeting place for residents and travelers.
“The landmark community hotel has a prominent place in the history of the Darlinghurst and Oxford Street community. MAHM will honour this as we look to re-establish the hospitality heartbeat of Taylor Square through a refurbishment that celebrates its significant heritage. We anticipate the refurbishment work, coupled with our staff engagement and community advocacy focused operational model will deliver attractive returns for investors, enhanced and enriching experiences for Darlinghurst patrons and a fantastic opportunity to reimagine the late-night economy with Sydney as it opens up post COVID.”
Settlement of the acquisition is anticipated in February 2021 subject to customary conditions precedent.
With approximately $300m worth of NSW hotels transacting on a consolidated basis during the CV-19 period alone, incorporating 37 hotel sales in 36 weeks, HTL Property is witnessing first hand how its national client base is achieving prosperous outcomes when taking advantage of the historically low interest rate environment.
“We have seen strategic advances implemented by clients, whether on the buy or sell side of transactions during this past year, that have extracted hugely rewarding outcomes” added HTL Property’s Managing Director, Andrew Jolliffe.
“As such, the asset class remains heavily pursued by astute sources of both capital and debt, and represents a safe investment environment in a geographically shrinking region for A-grade opportunities” Jolliffe concluded.
The sale of the Courthouse Hotel brings HTL Property’s Sydney Metro consolidated freehold hotel sales to $164.85m for CY2020 alone; a 72.1% market share when compared to its competitive set.
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