Chris Feros, manager of the Feros Hotel Group (FHG), has added Sutherland Shire pub, the Engadine Tavern, to his group’s significant holding of local properties.
FHG, in partnership with the Harvey brothers (owners of Sydney’s Cheers bar) reportedly paid $35m to a joint venture of vendors headed by Peter Ashelford, Tony Denny and partners. The purchase was facilitated by HTL Property and Highland Commercial Property.
“We are extremely excited to take the reins of the Engadine Tavern, an asset and operation that fits our model perfectly,” Feros commented.
“We aim to continue to serve the local community within which we are already deeply entrenched.”
The pub features a 1AM liquor licence and 26 gaming machine entitlements. Overall, the business generates more than $7m in revenue each year from its bar, bistro, wagering and liquor liquor income streams.
As part of the purchase, FHG have also acquired the adjacent retail properties, which HTL says ‘deliver a robust passive income stream, as well as diversification and footfall benefits.’ Not included in the deal, however, are the 64 next-door residential apartments that the previous owners are constructing on the pub’s former car park.
HTL Property Director, Sam Handy, said the sale attracted significant attention from would-be buyers.
“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.”
Dan Dragicevich, HTL National Director, believes the pub is well positioned to navigate on-going economic headwinds.
“The combined properties provide various downside mitigators, strong underlying property fundamentals and the business, [is] a well-diversified mix of trade – essentially recession-proof.
“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.”
FHG already owns Sutherland Shire properties: The Prince at Kirrawee, Highfields Hotel and the Taren Point Tavern. The group was also recently announced as the operators of the new Bingara Gorge Country Club.