By Andrew Starke
Interest is slowly returning to the pub sector with several properties exchanging hands around the country over the past two weeks.
Advertising entrepreneur John Singleton, investment banker Mark Carnegie and former Qantas CEO Geoff Dixon acquired the Bellevue Hotel in Paddington for about $4.2 million.
The property was listed for sale following the death of Evenrace’s Dr Ron White earlier in the year.
It had previously sold for $5.5 million in 2004.
Daniel Dragicevich of CBRE Hotels negotiated the sale of the eastern suburbs property on behalf of the Evenrace Group.
“The hotel attracted significant buyer interest and the yield, of close to 10%, is further evidence that the sub-$7 million hotel market in metro Sydney is still highly sought after by investors and publicans,” he said.
An Evenrace spokesperson said Dr White’s death had been keenly felt by staff and members of the group.
While the hotel has been running smoothly since his death, with Damien Pignolet presiding over the hotel’s restaurant component, it had been decided that planned renovations which would substantially upgrade the hotel would be difficult to implement.
Evenrace will retain the Woollahra Hotel which the group purchased in 1992.
“For some time, John Singleton has shown interest in purchasing the Bellevue, which he views as an Eastern Suburbs icon, however Dr White had been reluctant to sell,” said the Evenrace spokesperson.
“This deal is a win/win for both parties.”
The Bellevue is located on a prominent corner site fronting Hargrave Street and Caledonia Lane.
The property includes a public bar, full commercial kitchen and dining room, a large TAB facility, upper level function area and hoteliers license with nine gaming machines.