By Triana O'Keefe, editor Australian Hotelier

Leading hospitality group Merivale has announced the purchase of Sydney icon Newport Arms.

Following the Merivale Group's acquisition of the now market leading Coogee Pavilion, Justin Hemmes commented that "assets as unique as the Newport Arms deserve to be celebrated, and that will be our intention when we implement our business plan in due course".

Exclusive selling agent Andrew Jolliffe of Ray White Hotels said the current accessibility of debt markets provided the buyer with the best possible opportunity to fund an acquisition of this nature.

"Properties such as The Newport Arms transcend their asset category, and astute investors assess them on the basis of being property plays, significant cash flow opportunities and generationally held investments" added Jolliffe.

Owner Wayne Bayfield said he was pleased with the sale and gains comfort from selling to another family run business.

“We had a range of interest from both local and international hotel groups, as well as developers and private equity funds,” he said.

“We always said that the objective was to sell the hotel to someone who would ensure its longevity within the community as a meeting point, a focal point, and in Justin we have found a buyer who will unlock the potential in the business and provide a product that the Northern Beaches can continue to be proud of for decades to come."

The agents would not comment on a selling price, however commented that it was consistent with market guidance provided throughout the campaign.

Merivale will officially take possession of the property in May 2015. Further details and plans will be announced soon.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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