Third Sydney Pub Sold in as many weeks by HTL

The multi-storey Agincourt Hotel in Sydney’s southern CBD, has been sold by leading national brokerage agency HTL Property; following an off-market transaction negotiated by agents Dan Dragicevich and Andrew Jolliffe.

The successful sale to a new investor group, immediately follows the boutique firm’s announcement last week of the nearby Crystal Palace Hotel to JDA Hotels.

Proudly owned and operated by the same partnership for the past 25 years; the prominent George Street venue is strategically positioned across the road from the burgeoning $3 billion Tech Central and Central Place precincts – forecast to provide 268,000 sqm of commercial space and house an additional 16,000 commercial employees once completed. The statuesque hotel’s positioning within the southern CBD precinct provides a compelling trade narrative; with the hotel proximate to other growth and demand drivers such as the Central Park mixed-use development, the University of Technology campus, Broadway Shopping Centre, Paddy’s Markets & the Darling Square precinct.

The Agincourt business currently generates annual revenues of ~$5,200,000 across bar, food and gaming, and features a valuable 24-hour liquor licence with 30 gaming machines attached. The hotel is predominantly positioned as a late-night entertainment venue with nightclub ‘Club 871’ operating on the first floor, and live entertainment space ‘The Alley’ operating out of the basement level. With four licensed floors and an approved patron capacity of 540 people, it is anticipated the incoming operators will seek to execute a large-scale reconfiguration, renovation and refurbishment.

The hotel is prominently positioned on a corner site and enjoys favourable planning approvals including B8 Metropolitan Centre zoning, 45 metre height approval and 7.5:1 FSR.

“Strategically located pubs with the intrinsic fundamentals of the Agincourt rarely come to market and are always keenly sought after, as was also the case with the Crystal Palace Hotel” commented HTL Property National Director, Dan Dragicevich.

“There has been a noticeable surge in buyer enquiry in the last 6 months, spurred on by now consecutive and further  forecasted interest rate cuts, a majority government election result and a tightening in the availability of quality stock. We therefore expect cap rates to continue to compress throughout the year” added Dragicevich.

The Agincourt Hotel is the third major Sydney freehold going concern sale announcement over the past month by HTL Property, following the firm’s announcement of both the Crystal Palace Hotel (Haymarket) and the Union Hotel (North Sydney).

“Sydney is blessed to house some stately mid-century architecture which also serve as vehicles around which communities gather and socialise” advised HTL Property Managing Director, Andrew Jolliffe. “The Agincourt, like the Crystal Palace sale last week, is one such example and further validation of our view that investors will continue to front run the improved aesthetic and availability of credit to take positions in hard yielding property assets” concluded Jolliffe.

End.