Following the August 2017 sale of The Collaroy beachfront hotel for more than $20 million to the Justin Hemmes-led Merivale Group, the nation’s leading hospitality company has made its intentions clear by backing up the northern beaches purchase with the acquisition of Marrickville’s Vic on the Park, following a very competitive EOI sale process.
“We have a self-imposed mandate to grow this wonderful business both deliberately and responsibly, and wherever we see property-backed opportunities for us to create unique experiences for our loyal client base,” Merivale CEO Justin Hemmes says.
“Vic on the Park has long been at the heart of Marrickville, a vibrant community hub where people of all ages and walks of life can come together.
“We have loved being part of the inner west since opening Queens last year and can’t wait to take on what is undoubtedly an important and cherished venue in the area.”
The Vic on the Park hotel, pictured above and below, was sold by the Australian Pub Fund (APF) – the seventh such sale of an A-grade freehold hotel by the Carnegie, Singleton and Dixon private equity joint venture vehicle over the past 12 months.
APF director Matthew Beach believes the sale highlights the continued strength of the hospitality and leisure market in gateway cities such as Sydney and Brisbane.
“The EOI process delivered a material number of genuine enquiries, and resulted in multiple offers from experienced hospitality operators,” Beach says.
“We are very happy with the results achieved on the seven pubs we have sold to date. We will continue our divestment process for our remaining pub assets, whilst concurrently looking for investment opportunities both within and outside the hospitality-based property sector.”
APF CEO Andrew Gibbs says: “The sale of the Vic on the Park continues our fund’s divestment strategy and means we will maintain the operation of the Unity Hall Hotel in Balmain, and both The Elephant and Exchange hotels in Brisbane. The sale also provides the opportunity for our fund to further consider acquisition opportunities already in front of it.”
The Vic on the Park Hotel is a large-format 1247sqm hotel site on the corner of Addison and Enmore roads in Sydney’s inner west suburb of Marrickville.
Operating 25 electronic gaming machines and with a hugely popular food and beverage business generating over $7.46m in annual sales, the exclusive agents for the sale report a particularly active campaign.
Andrew Jolliffe, Asia Pacific Director of Ray White Hotels, says the team employed a strategic and very public sales campaign involving both national print and digital media levers.
“The response was consistent with our expectations for an A-grade property holding of this commercial complexion,” Jolliffe says.
CBRE Hotels’ Daniel Dragicevich says: “The mixed-development momentum within the precinct the hotel is situated meant we received considerable enquiry from both hoteliers and developers. The likelihood of future land value accretion, given the potential for alternative uses, was almost certainly a potent attractor for astute investors.”
The exclusive agents for the sale would not be drawn upon price, however confirmed the sale level was in the predicted range.
“Our guidance throughout the campaign was between $22m and $25m, and that is ultimately what we achieved for our client,” Jolliffe says.
The sale of significant A-grade freehold hospitality assets on Australia’s Eastern Seaboard continues its impressive market depth, with exclusive agents Andrew Jolliffe and Daniel Dragicevich currently selling both Bondi’s iconic Icebergs and the Terrey Hills Tavern respectively.