Developments

Double Bay Hotel Expected to Sell for $80m

The Golden Sheaf Hotel in Sydney’s Double Bay is tipped to fetch more than $80 million for the vendor and give heart to other investors that the beleaguered pub market has bottomed.

Bruce Solomon’s Solotel Group has put the pub, considered the country’s most profitable, on the market with the funds earmarked to expand further into the restaurant and nightclub arena, including the new Bar Sydney in Westfield Sydney and a possible complex in New York.

The Golden Sheaf forms part of Solotel’s existing 16 hotels and four restaurant portfolios, which include the two Aria restaurants in Sydney and Brisbane, run by celebrity chef Matt Moran, who will also run the new Bar Sydney.

Since the start of this year, there has been more than $60 million worth of pubs that have changed hands.

These include the Woollahra Hotel, the Royal Oak Hotel in Double Bay, the Penshurst and Toxteth hotels and, most recently, Jack Thompson’s Gearin Hotel in Katoomba.

Jones Lang LaSalle’s national director of pub investment sales, John Musca, who is the agent for the Golden Sheaf, said a further $30 million-plus in deals was ready to be signed in the coming weeks.

Aside from the direct sales, the pub sector is also awaiting an update on the long-running Redcape Group sale. Earlier this week Redcape, the former Hedley Pub group, granted a consortium of York Capital Management, Varde Partners Inc and Goldman Sachs (Asia) Finance an extension to July 29 to finalise the terms of a rescue and recapitalisation package for Redcape.

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