Landmark Sutherland Shire Hotel and Site Sold

HTL Property and Highland Commercial Property are pleased to announce the sale of the imposing Engadine Tavern and adjoining retail sites.

The hotel is strategically situated within the Engadine town centre and is favourably surrounded by leading retailers such as Woolworths, Coles, ALDI, and Dan Murphy’s.

The Vendor, a joint venture headed by highly regarded hotelier Peter Ashelford and combining expertise in property investment, development, and hotel operation, acquired the hotel with a planning approval in place; and upon settlement, immediately set about activating the development approval for 64 luxury residential apartments on the hotel’s adjacent car park. Now under construction and close to being completely sold out, the residential development known as The Heritage Apartments, has been subdivided from the hotel.

The multiple properties have been successfully purchased by well known local publican Chris Feros of the award winning Feros Hotel Group (FHG), adding to their hugely popular portfolio of Shire venues including The Prince at Kirrawee, Highfields Hotel in Caringbah and the Taren Point Tavern. FHG also recently received approval for its Parc Pavilion development in the heart of Cronulla itself. “We are extremely excited to take the reins of the Engadine Tavern, an asset and operation that fits our model perfectly; and we aim to continue to serve the local community within which we are already deeply entrenched” stated successful Purchaser, Chris Feros.

The Engadine Tavern business generates in excess of $7,000,000 in annual revenues across bar, bistro, gaming, wagering and retail liquor. The business features a 1am liquor licence with 26 gaming machine entitlements. In addition, the hotel enjoys a large trading footprint with scope to activate the upper floor into an alfresco beer garden. The adjoining retail tenancies deliver a robust passive income stream, as well as diversification and footfall benefits.

“The campaign generated great interest from both hoteliers interested in reinvigorating the offering; through to developers, land bankers and investors who were attracted to the site’s strategic land holding – which offers flexible redevelopment and site amalgamation options” advised HTL Property Director, Sam Handy.

“The sale to a well-regarded and experienced organisation such as the Feros Hotel Group, is a distinct vote of confidence in the hotel sector; and exemplifies a flight to quality, high floor value assets. The combined properties provide various downside mitigators, strong underlying property fundamentals and the business, a well-diversified mix of trade – essentially recession-proof” noted HTL National Director, Dan Dragicevich.

“HTL Property has now recorded 16 transactions in the first 16 weeks of the year, totalling in excess of $500m in sales; and it remains our considered view that the national marketplace is on the precipice of a period of unprecedented transaction activity” concluded HTL Property Managing Director, Andrew Jolliffe.

End.