John Singleton sells Bondi Icebergs restaurant leasehold for $15 million
Advertising mogul John Singleton has offloaded the leasehold of Bondi Beach’s Icebergs Dining Room and Bar for about $15 million – the first time it has changed hands.
One of the country’s most famous hospitality venues, the restaurant space has been scooped up by the Melbourne-based O’Brien Group, Australia and New Zealand’s biggest private hospitality business. It operates stadiums in Victoria, Queensland and Auckland and owns pubs in Melbourne and Brisbane.
Built in the 1960s, the restaurant is on the top floor of the Bondi Icebergs Club, occupying 675 square metres at 1 Notts Avenue, which is crown land.
John Singleton created the first leasehold of Bondi Icebergs Sydney in the 1990s. Photo: Peter Rae
The multimillion-dollar leasehold over the space will last until 2042, with the Icebergs restaurant lease, held by director Maurice Terzini, to end in 2036.
Selling agent Andrew Jolliffe of Ray White Hotels said the six-year period following the end of Terzini’s lease meant there was a chance the O’Brien Group could run the venue themselves if the lease was not extended.
“There’s an operating period of time that needs to be resolved, so either they extend Maurice’s lease or they operate it themselves or they get someone else to. And then they might extend the time again with the State Government.”
But he said that the short-term vision had been to “own it first”.
“Arguably, (the six-year window) gave them the confidence to be able to acquire that thing knowing that if they did have to do some operating, they’ve clearly got the capacity to, but I don’t think that’s necessarily what their initial strategy would be,” Mr Jolliffe said.
“I think they just want to own it, it’s a hugely successful business, they’re very respectful of Maurice and his team’s ability and what they’re producing in there.”
O’Brien Group Australia’s group director Michael Xavier O’Brien said they were “confident Icebergs wholly complements our group”.
Thanks to its waterfront views, the Bondi Icebergs restaurant is one of Australia’s most famous venues. Photo: Henry Zwartz
Ten groups put in bids for the prized top-floor space, with six being Australian groups and four overseas.
“We had quite a bit of international interest but also we had a lot of domestic interest from people who were not unlike the O’Brien Group in the sense that they recognise and want to own iconic hospitality pieces but do not necessarily want to operate them,” Mr Jolliffe said.
“That’s because it’s irreplaceable, because it is totally unique and it’s timeless; it’s arguably one of the best hospitality businesses in Australia.”
The agent said that hospitality properties geared towards dining are “hugely profitable and healthy”, especially those which focus on “experience-based dining”.
“The emergence of groups that are using their scale to have brand representation geographically over a number of states will continue,” he said.
“I think the level of offering is so much higher now for the consumer and the consumer is so much more well-versed because of the success of a number of culinary shows on TV.
“What’s the total experience? Sure, there’s food and beverage but what’s the ambience, what’s the decor, what’s its brand positioning in? High-end doesn’t necessarily mean ‘fine’ anymore, I think high-end means experience.”
