JLL has secured a joint pub deal with close to $100m through the sale of the Rydalmere Tavern and Chelsea Hotel, with respected publican Rod Salmon selling the Rydalmere and moving into the Chelsea Hotel in Chatswood.
The deal adds to a record year for JLL, which has now sold in excess of $1.2bn of assetss across 78 transactions in 2023 thus far.
The was brokered exclusively by JLL Hotels & Hospitality Group Managing Director, John Musca and Senior Vice President, Ben McDonald, and McDonald said: “Situated on over 3,000sqm of land and offering genuine value-add/development potential, 30 gaming machine entitlements and being the recent recipient of a 4am extended trading approval in June this year, Rydalmere Tavern has the potential to be one of Western Sydney’s key destination venues as the area continues to evolve.”
Salmon developed the Rydalmere Tavern after purchasing two adjoining commercial properties in 2017 on Victoria Road in Rydalmere. He then repositioned the assets into a mixed-use hospitality offering with ground floor restaurant and first floor commercial tenants. Totally Workwear and Plus Fitness Gym remain at the property and offer the new private owners substantial net rental income for the duration of their tenancies.
JLL would not be drawn on the identity of the purchaser of Rydalmere Tavern it is said to be a private hotelier with significant interests in the pub space.
Musca said: “The perpetual nature of hotel cashflows in key markets have shown their unrelenting ability to perform despite changing economic conditions. Long term hotel investors continue to seek out assets offering value accretive characteristics for existing portfolio’s, and we expect that to continue in 2023 despite a moving macro-economic environment.”
The sale follows an enormous week of transactional activity for JLL Hotels with over $350m of pub assets either sold or in final stages of negotiation nationally.