ASX listed Lantern Hotel Group is offering Botany’s Waterworks Hotel for sale – delivering what is expected to be one of the final pub trading opportunities in Sydney for 2016.
Daniel Dragicevich and Sam Handy of CBRE Hotels have been exclusively appointed to steer the campaign, which is timed to capitalise on the current bullish market conditions.
CBRE National Director Daniel Dragicevich said the Waterworks Hotel was ranked 198th for gaming revenue in OLGR’s recent September quarter TOP 200 report.
He noted that there was also significant growth potential, given the hotel’s rare 24-hour liquor licence with 3-hour gaming shutdown and location in one of Sydney’s strongest gaming LGA’s, with surrounding pubs ranked 54th, 70th and 87th in the TOP 200 report.
“The hotel has been achieving an average weekly gaming turnover of $784,528 and a net profit of $65,658 over the past 19 weeks. Only six of its 26 gaming machines are currently outdoor and there has been recent DA approval for a new alfresco gaming room. There is also scope to increase the number of machines to the full complement of 30,” Mr Dragicevich said.
“The pub is also situated in close proximity to the Sydney Airport and Port of Sydney and its 24-hour liquor licence is attractive to the many thousands of shift workers that clock in and out each day.”
The Waterworks Hotel is located on a prominent 902sqm site within the main retail and commercial heart of Botany. The site offers future redevelopment potential for residential apartments and short term accommodation underpinned by its B2 – local centre zoning, 14m height approval and generous 2:1 FSR.
CBRE Director Sam Handy said the campaign followed the recent successful sales of Lantern Group’s Uncle Bucks and Ambarvale hotels, both of which had been fiercely contested.
“We anticipate that there are publicans out there keen to acquire the hotel and take over the tills in early January next year as opposed to waiting for another acquisition opportunity in four to six months’ time,” Mr Handy said.
“Unequivocally, there won’t be another TOP 200 gaming pub with these core trading attributes and this amount of upside coming to the market in the foreseeable future.”
The Waterworks Hotel campaign will cap a watershed year for CBRE Hotels who have sold in excess of $270 million in pubs across over 30 individual transactions in New South Wales alone. Notable sales include the Ambarvale Hotel ($21.2m), Uncle Bucks ($25.3m) and the Keystone portfolio ($55m).
Expressions of Interest close on Tuesday 13th December 2016 at 5pm (unless sold prior).
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