Western Sydney Gaming Leasehold Sold

The leasehold interest in the popular Town Tavern, situated within the active Blacktown CBD, has transacted for an undisclosed sum following a high profile and highly competitive sale process.

The hotel was sold by Andrew Jolliffe, Dan Dragicevich and Sam Handy of HTL Property, in conjunction with Matthew Meynell and Jordan McConnell of Colliers; and on behalf of Quentin Olde, Liam Healey and Ben Rollo of Ankura – acting in their capacity as Receivers & Managers.

Western Sydney gaming leaseholds are highly coveted and accordingly seldom become available; and the consistent TOP 200 performer was consequently always anticipated to be highly sought after; particularly when considering its highly predictable cash flow and profitable business mix across bar, gaming and wagering.

The hotel sits within a retail tenancy, and is immediately adjacent the Blacktown train station and bus interchange. In addition to the term left to run on the Lessee’s lease, the sale also included ownership of both the liquor licence and very valuable 30 gaming machines licences.

The macro investment fundamentals for the business were also considered to be compelling given there exists only one other competing hotel within the Blacktown CBD; in concert with strong forecast population growth and demand drivers being delivered by the Blacktown Quarter masterplan.

“Western Sydney hospitality indexed businesses are highly sought after investment vehicles, and which enjoy the benefit of being attended to the largely unbridled population and infrastructure growth so apparent in this prosperous part of the city” advised HTL Property Managing Director, Andrew Jolliffe.

The hotel is situated within the Westpoint Shopping Centre, which is currently owned by real estate funds manager Queensland Investment Corporation (QIC).

The centre itself enjoys annual turnover of $652.9 million, and comprises some 260 specialty stores with 87% of the centre being occupied by national and/or listed tenants such as Coles, Woolworths, ALDI, Kmart, Myer, Target, Big W, Hoyts, Rebel and JB Hi-Fi. Westpoint Shopping Centre adorns a 9 hectare land holding within Blacktown’s prime business area.

“Alongside our co-agency HTL Property, we ran a very competitive on-market process; drawing interest from a vast array of very experienced publicans and investors, and which saw multiple offers to purchase submitted and a highly competitive bidding process” concluded Colliers Managing Director of Investment Services, Matthew Meynell.

The exclusive agents at HTL Property and Colliers would not be drawn upon as to the identity of the successful purchaser, nor the price paid for the Blacktown Tavern; however confirmed the successful party was a very experienced and highly regarded multi-hotel owner/operator.

End.