Family owned De Angelis Hotel Group has recently added to its extensive hotel portfolio, with the acquisition of Uncle Bucks Hotel in Mount Druitt.
The recent addition joins De Angelis Hotel Group’s collection of top gaming pubs across Sydney, including Moorebank Hotel, Green Valley Hotel and Bath Arms Hotel.
CBRE’s Daniel Dragicevich and Sam Handy negotiated the sale on behalf of ASX listed Lantern Hotels Group, with the hotel yielding a sale price of $25.3 million. In its announcement to the stock market, Lantern advised that the sale price represented a 30.5% premium on the 30 June 2016 book value.
Located on a 5,640sqm site, Uncle Bucks Hotel is strategically positioned in the heart of the main retail and commercial precinct of Mount Druitt. The site offers future mixed used redevelopment potential - underpinned by B4 mixed-use zoning, 32m building height approval and attractive FSR ratio of 3:1. The hotel features a 24-hour liquor licence with ‘early opener’ flexibility, 27 gaming machines and is surrounded by some of the state’s best gaming hotels.
Mr Dragicevich said Uncle Bucks offers all the core trading attributes of a top 50 gaming pub, making it one of the most anticipated Sydney gaming pub opportunities over the past five years.
“Assets such as this are seldom publicly offered to market, which contributed to a keenly contested process which yielded an exchange of contracts some four days prior to the scheduled close of the campaign.”
“Lantern has done a great job adding value to the asset over the past twelve months and the venue will no doubt continue to grow under the De Angelis Hotel Group’s guidance.”
“The availability of Sydney’s AAA gaming pubs is rapidly diminishing, with only a small pool of these assets remaining under private individual ownership and seemingly available for acquisition in the foreseeable future. Genuine market buoyancy at the top end is being driven by this undersupply, in combination with robust trading conditions, improved debt liquidity and a low interest rate environment,” Mr Handy added.
The transaction follows a flurry of recent activity in the NSW hotel market, with CBRE Hotels negotiating in excess of $200 million worth of sales in NSW pubs across 29 separate transactions in 2016 so far.
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