By Clyde Mooney
Marrickville's popular Vic on the Park Hotel has been acquired for $6.95 million by prominent Sydney pub operators Riversdale Group.
The city fringe venue boasts a large site with 3am trading and 26 gaming machines in a newly renovated gaming room. It was sold by Nelson Meers, who paid $10.35 million for it in 2007.
Riversdale director, Patrick Coughlin, told TheShout that the company recognised an opportunity in a market that was not being fully serviced.
"None of the local pubs are servicing the area properly," he said.
"We intend to take it from being gaming-focused to a more well-rounded business, similar to the Toxteth, and engage with the increasing artistic community in the inner Sydney community.
"It is another inner-city pub on a big footprint that fits nicely into our portfolio." [continues below]
Vic on the Park Hotel, Marrickville
Broker of the transaction, national director of Jones Lang LaSalle Hotels, John Musca, suggested that the sale demonstrates positive market sentiment, and "reaffirms the market dichotomy whereby core trading attributes like late licences, smoking areas, larger trading footprints and strategic locations are valued by the more astute buyers in the market".
"The hotel enjoys the ideal location, drawing from adjacent residential and light industrial precincts, in a gentrifying area underserviced by contemporary hotel propositions."
Riversdale Group has successfully re-branded a number of venues, most recently Glebe’s historic Toxteth Hotel.
The Group has previously stated that the market is ripe for quality acquisitions at the right price.
JLL currently has nearly $100 million of hotel transactions in due diligence or under agreement.
"The market's bespoke approach to operating opportunities continues to be reflected in improved investment sentiment," concludes Musca.