Another AAA Grade Pub Portfolio Hits the Market

Insolvency and restructuring experts Wexted Advisory has appointed leading specialist brokerage agency HTL Property to sell the Pub Invest Portfolio of four hotels.

The collection of hotels comprises the Rose & Crown (Parramatta), Crown Hotel (Surry Hills), Corrimal Hotel (Wollongong) and the North Nowra Tavern (Nowra).

Wexted Advisory’s Andrew McCabe and Joseph Hayes were appointed as Administrators to the assets in November last year.

“Given the locations and level of interest received to date, we anticipate a lot of interest in the sale of the venues” said Administrator, Andrew McCabe.

The four hotels are well balanced, historically strong trading businesses as well as being considered robust gaming venues; and are scheduled to be offered to the market via two tranches in a strategic sell down.

HTL Property’s Andrew Jolliffe, Dan Dragicevich, Sam Handy and Blake Edwards have been exclusively appointed to manage the public sale campaign.

This appointment follows HTL Property’s recent record-breaking sell down of the Bittini Portfolio of hotels on behalf of the Stanford family; and which delivered a consolidated divestment outcome of approximately $160M.

“Allocated capital and the market appetite for A grade hotels remains unsatisfied across the national landscape, and as such we expect widespread interest from experienced hoteliers and sophisticated funds for these rare hospitality properties” advised HTL Property Managing Director, Andrew Jolliffe.

The first two hotels being offered to market will comprise the Rose & Crown Hotel (Parramatta) and the Corrimal Hotel (Wollongong).

“The Rose & Crown Hotel represents an extremely rare opportunity to enter the high performing Parramatta pub market and the Top 150 gaming segment, both being characterised by an unmistakable supply and demand imbalance” stated HTL Property National Director, Dan Dragicevich.

The hotel is situated on the cusp of the Parramatta CBD and features a 24 hour liquor licence with the maximum allowable 30 gaming machines attached. The Rose & Crown Hotel consistently ranks as a TOP #150 gaming venue, and is also tipped to attract interest from developers given its B4 mixed-use zoning, 26 metre height and 4:1 FSR approvals.

The hotel is also well positioned to capitalise upon the forecast $20 billion investment in development and infrastructure in nearby projects such as Parramatta Square Masterplan, the Riverbank precinct, light rail and Commbank Stadium.

“The Corrimal Hotel is one of the state’s most profitable coastal hotels, a segment of the market that has garnered perhaps the most market attention during these disrupted years; and presents all the intrinsic fundamentals that astute purchasers seek in a sub-metro hotel investment opportunity” concluded HTL Director Sam Handy.

Demonstrating a diversified business mix; the large format hotel is situated in the main retail and commercial precinct of Corrimal.

The hotel not only adjoins the Corrimal Village Shopping Centre, but is also proximately located to the former Corrimal Coke Works site which closed in 2014; and has since been rezoned for a residential master planned community.

The 18 hectare site, will feature approximately 550 new dwellings and will represent the largest ever brownfield urban renewal project within the Illawarra region.

The Corrimal Hotel features a 24 hour liquor licence with only 23 gaming machines attached, despite the hotel being situated in an Amber zone SA2 region. The Corrimal Hotel consistently ranks as a TOP #250 gaming hotel, and underwent an extensive $2.5 million renovation and refurbishment in mid 2018.

Both the Rose & Crown and Corrimal Hotels are being individually sold via a National Expression of Interest campaign closing Wednesday 2 March 2022.

It is envisaged that The Crown Hotel (Surry Hills) and the North Nowra Tavern (Nowra) will be brought to market as the second tranche shortly thereafter in mid March 2022.

End.