Large format hotel sold on NSW South Coast - HTL Property
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Large format hotel sold on NSW South Coast - HTL Property
The North Nowra Tavern has sold to private equity consortium Pub Invest in a transaction negotiated by HTL Property agents Dan Dragicevich, Andrew Jolliffe and Sam Handy.
A private equity consortium headed by ex- Citigroup banker Damian Kelly has purchased the North Nowra Tavern on the NSW South Coast.
The sale heralds Pub Invest's fourth hotel purchase, having steadily acquired the Crown Hotel (Surry Hills), the Corrimal Hotel (Corrimal) and the Rose and Crown Hotel (Parramatta) over the last few years.
Mr Kelly said they believed the asset class satisfied a number of key real-return criteria, and enjoyed downside mitigation factors not available to investors elsewhere.
"We're granular and patient about our assessment of opportunities, but we're deliberate when we highlight a target and this won't be our last," he said.
At a glance:
- The North Nowra Tavern on the NSW South Coast has been sold to private equity consortium Pub Invest.
- The venue is situated on an underutilised 6,019* sqm landholdings, with the site's zoning allowing for significant redevelopment potential and a broad range of permissible uses, including neighbourhood shopping centres, medical centres and motel accommodation.
- The transaction was brokered by HTL Property agents Dan Dragicevich, Andrew Jolliffe and Sam Handy.
The sale was brokered by HTL Property, which has advised the sale of 18 hotel assets since February 2020 and has now brokered 21 sales this year.
HTL Property National Pubs Director Dan Dragicevich, who steered the sale process with Andrew Jolliffe and Sam Handy, said hard yielding, property-driven assets were attractive to investors and transcended asset class appetite.
"These type of properties provide investors with a welcome return on equity respite from what are increasingly financially languishing alternatives," he said.
The outline of the North Nowra Tavern. Source: HTL Property
The North Nowra Tavern is a large format coastal freehold strategically positioned next door to the North Nowra Shopping Centre and within an exclusive trade catchment of 5,976* residents.
The business generates in excess of circa $7.50 million in annual revenues across bar, bistro, gaming, wagering and retail liquor.
The hotel features a 1:30am liquor licence with 25 gaming entitlements.
There is also a DA approval in place to significantly increase the size of the trading footprint and optimise the layout of the hotel.
Additionally, the North Nowra Tavern is situated on an underutilised 6,019* sqm landholdings, with the site's zoning allowing for significant redevelopment potential and a broad range of permissible uses including neighbourhood shopping centres, medical centres and motel accommodation.
Mr Jolliffe said Australia's east coast had proven a happy hunting ground for hospitality investors across the past year.
"Key Coastal and Regional centres along Australia’s east coast have been heavily investigated and consequently actioned by numerous leading hospitality investors over the past 12 months," he said.
"The North Nowra Tavern is our thirteenth coastal freehold sale in the last 12 months."
*approximately
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