The multi-storey Agincourt Hotel in Sydney’s southern CBD, has been sold for the first time in 25 years.
The successful sale of Agincourt Hotel to a new investor group, was negotiated by HTL Property’s Dan Dragicevich and Andrew Jolliffe in a restricted off-market campaign. It’s the second pub sale in the that corner of the CBD in as many weeks, following the sale of Crystal Palace Hotel to JDA Hotels.
Proudly owned and operated by the same partnership for the last quarter century; the prominent George Street venue is positioned across the road from the burgeoning $3 billion Tech Central and Central Place precincts which are forecast to provide 268,000 sqm of commercial space and house an additional 16,000 commercial employees once completed.
Other growth and demand drivers are located near Agincourt Hotel, includin the Central Park mixed-use development, the University of Technology Sydney campus, Broadway Shopping Centre, Paddy’s Markets and the Darling Square precinct.
The Agincourt Hotel business currently generates annual revenues of roughly $5.2m 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 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,” stated Dragicevich.
“There has been a noticeable surge in buyer enquiry in the last six 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.”
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,” stated 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.”