By Clyde Mooney – editor Australian Hotelier
The Sydney pub real estate scene has hit the jackpot with three top gaming venues going to market.
The Redmond Group is offering up its two Vegas Hotels, located in Seven Hills (pictured) and Kings Cross and enjoying positions 31 and 66 (respectively) on the OLGR’s list of top gaming venues.
The pubs come to market as a result of the group’s plans to use the equity capital to develop a $200 million retail and commercial development project at the site of its Mount Druitt Vegas Hotel.
The Redmond Group has owned the Seven Hills location – formerly known as St Patrick’s Tavern – for 16 years, and the Kings Cross venue since early 2013.
Available together or individually, selling agent Jones Lang LaSalle’s (JLL) John Musca said the opportunity was rare, and that the rebound seen since the Kings Cross restrictions was suggestive of the reliable nature of this style of venue.
“The gaming-centric nature of this portfolio presents an immediate market share opportunity to astute operators and investors,” said Musca.
“After an initial dip in earnings on introduction of the O’Farrell legislation, gaming revenues have continued to track back and year-on-year are almost in line, showing the resilience and uniqueness of this particular business and asset.”
Furthering the gaming windfall, JLL is also marketing the Crest Hotel in Sylvania, which is itself a top 250 venue with 24 EGMs in a Band 1 district.
The large format hotel sits on a 3,700 sqm commercial site on a high-profile main road, next to Southgate Shopping Centre.
The classic ‘Shire’ hotel is likely to attract significant interest, incorporating a diverse business well patronised by locals, with a take-away liquor licence, gaming room with smoking solution and three retail tenancies.
JLL’s Musca said the Crest is suited to a number of options “to reconfigure and optimise”.
For more on the pub real estate market visit our dedicated Pub Sales page.