New owner toasts acquisition of North Sydney's Greenwood Hotel

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Jun 14, 2017

New owner toasts acquisition of North Sydney's Greenwood Hotel

The Balmain Pub Group (BPG) has sold its leasehold interest in the iconic Greenwood Hotel in North Sydney for just over $10 million to well-known Sydney hotelier Simon Tilley.

CBRE

Greenwood Hotel

CBRE Hotels’ Daniel Dragicevich and Sam Handy negotiated the sale following a keenly contested on-market campaign, which drew significant interest from food and beverage operators all along the eastern seaboard.

It is the latest acquisition for Mr Tilley, the long-time owner of Sydney’s New Windsor Hotel in the Sydney CBD, following his recent acquisition of the city’s Verandah Bar.

The Greenwood deal is part of strategic sell down of BPG’s portfolio, following last month’s sales through CBRE of the Swanson Hotel in Erskineville and the Town Hall Hotel in Balmain. Including the Greenwood transaction, the three sales have totaled close to $25 million.

CBRE Hotels National Director Daniel Dragicevich said; “The keenly contested campaign for the Greenwood Hotel is in line with a recent market shift towards high cash flow leaseholds which are traditionally sold on more attractive multiples than the traditional freehold going concern model. Experienced operators understand that if the rental ratios are right these types of assets are irreplaceable.”

Mr Dragicevich added; “For this very reason, there have been only owners of the Greenwood over its 25-year lifespan. This, coupled with the continued redevelopment of the North Sydney CBD, means the incoming owner is well positioned to continue the Greenwood’s legacy and elevate the business even further.”

Originally built as a church in 1878, the Greenwood Hotel has evolved into North Sydney’s landmark hotel and is situated across an expansive 1,761sqm trading footprint with multiple bars, function rooms, outdoor areas plus a dedicated gaming and wagering area.

It is located immediately above North Sydney train station, bus interchange and Mirvac’s Greenwood Plaza which comprises over 100 retailers, 273 car parks and delivers in excess of $100 million in annual net sales across 18 million visitations per annum.