Terrey Hills Tavern to tempt hoteliers land bankers and developers
Terrey Hills Tavern to tempt hoteliers, land bankers and developers
| 28 September 2017
One of Sydney’s iconic suburban freehold pubs, the Terrey Hills Tavern, has been listed for sale with a price tag north of $40 million.
The landmark Northern Beaches hotel has been placed on the market by Feros Group, led by well-known Sydney publicans Nick and Chris Feros, who recently opened the Prince Hotel in Kirrawee and count the Rocksia Hotel and Taren Point Hotel in their pub portfolio.
The group is also scheduled to open the newly developed Highfields hotel in Caringbah prior to Christmas and has signalled intentions to redeploy capital to this new venture as the rationale behind sale plans for the Terrey Hills Tavern.
The sale has also been timed to capitalise on the bullish Sydney freehold pub market, with circa $650 million in top tier pubs changing hands over the past 18 months across 26 separate transactions.
CBRE Hotels’ Daniel Dragicevich and Sam Handy have been exclusively appointed to steer the campaign, which follows the recent record divestment of the Beach Hotel in Byron Bay for $70 million.
Terrey Hills Tavern occupies a landholding of 15,870sqm and produces annual revenues exceeding $11.6 million. It is widely considered to be the jewel in the crown of the Feros Group portfolio.
CBRE National Director, Dan Dragicevich, said; “Terrey Hills Tavern ranks alongside other Northern Beaches favourites such as the Newport Arms in terms of the scalable nature of the business and sheer size of the operations, which astute hoteliers will be drawn to.
Mr Dragicevich noted that the hotel was also well positioned to capitalise on the nearby Ingleside land release and master planned mixed-use development, which would add an additional 3,400 new homes and 13,600 new residents to the immediate area.
CBRE Hotels’ NSW Director Sam Handy added that the Terrey Hills Tavern was virtually unopposed within its catchment area and was a genuine community focal point for tens of thousands of residents in the surrounding suburbs.
“We expect the sale campaign will generate interest from a broad spectrum of buyers. This will range from hoteliers attracted by the secure $11.6 million annual cash flow, through to land bankers and developers, with the site’s large landholding offering future development and site amalgamation options,” Mr Handy said.
The Terrey Hills Tavern campaign continues another strong year for CBRE Hotels who have sold in excess of $300 million in assets across 20 individual transactions in New South Wales alone.
The national Expressions of Interest process will close at 5:00pm on Thursday 26th October 2017.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.