JLL announce one of the largest pub deals of 2023 with the sale of Rydalmere Tavern and Chelsea Hotel in a combined deal worth circa $100m
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JLL announce one of the largest pub deals of 2023 with the sale of Rydalmere Tavern and Chelsea Hotel in a combined deal worth circa $100m
The deal, which sees industry identity Rod Salmon selling Rydalmere Tavern and moving into Chelsea Hotel, Chatswood was brokered exclusively by JLL Hotels & Hospitality Group Managing Director, John Musca and Senior Vice President, Ben McDonald.
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Chelsea Hotel Sold by JLL -
Rydalmere Tavern sold by JLL
JLL Hotels & Hospitality Group has today announced one of the largest pub deals of 2023 with the sale of Rydalmere Tavern and Chelsea Hotel in a combined deal worth circa $100m.
The sale adds weight to a record year for JLL Hotels having sold in excess of $1.2 billion of assets across 78 transactions in 2023 thus far and highlights the ongoing demand for pubs as the asset class continues to shine for some of the most well-respected hotelier’s and investors in the country.
The deal, which sees industry identity Rod Salmon selling Rydalmere Tavern and moving into Chelsea Hotel, Chatswood was brokered exclusively by JLL Hotels & Hospitality Group Managing Director, John Musca and Senior Vice President, Ben McDonald.
The low profile Rydalmere Tavern was the brainchild of Mr Salmon, having originally purchased two adjoining commercial properties in 2017 on Victoria Rd in Rydalmere. Mr Salmon then set about repositioning the assets into a mixed-use hospitality offering with ground floor restaurant and first floor commercial tenants, Totally Workwear and Plus Fitness Gym who remain at the property and offer the new private owners substantial net rental income for the duration of their tenancies.
Discussing the transaction, JLL Senior Vice President, Ben McDonald commented; “Situated on over 3,000sqm of land and offering genuine value-add/development potential, 30 gaming machine entitlements and being the recent recipient of a 4am extended trading approval in June this year, Rydalmere Tavern has the potential to be one of Western Sydney’s key destination venues as the area continues to evolve.”
Mr McDonald continued; “Already a highly ranked gaming venue, the chance to acquire assets underpinned by growing underlying cashflows at this premium end of the market is rapidly diminishing as a result of widespread asset consolidation. Combine that with over $400k in net passive income from the commercial tenancies, the underlying development scope plus sought-after geographical location and we think the result speaks for itself.”
Whilst the agents would not be drawn on the identity of the purchaser of Rydalmere Tavern it is said to be a private hotelier with significant interests in the pub space.
JLL Hotels Managing Director, John Musca, cited compelling investment characteristics of the asset class and the high barriers to entry as a drawcard for unplaced capital despite shifting global economic conditions.
“The perpetual nature of hotel cashflows in key markets have shown their unrelenting ability to perform despite changing economic conditions. Long term hotel investors continue to seek out assets offering value accretive characteristics for existing portfolio’s, and we expect that to continue in 2023 despite a moving macro-economic environment.”
The sale follows an enormous week of transactional activity for JLL Hotels with over $350m of pub assets either sold or in final stages of negotiation nationally.
To request a sales analysis please contact the selling agents JLL Hotels & Hospitality Group Managing Director, John Musca and Senior Vice President, Ben McDonald via the below contact details.
