Sydney Oxford Street gay bar Midnight Shift sells for $12 million
- High rents and falling patronage force many gay bars to close
- Arq nightclub owner Shadd Danesi sells another Darlinghurst investment property for $13.75 million
Iconic Sydney gay bar Midnight Shift has been acquired by Universal Hotels in what is believed to be a $12 million sale.
The historic 1000-square-metre venue on Sydney’s Oxford Street, previously owned by Arunta Investments, is now the hospitality group’s fourth investment in the famous precinct in the last year.
Midnight Shift was one of the Sydney’s most famous LGBTIQ venues and had operated for more than 35 years after opening as a men’s disco in 1980. The venue announced that it would be officially closing in October last year, with the building placed on the market.
The venue still has a performance area, which could be put to good use for the new operators. Photo: Supplied
The sale of 85-91 Oxford Street, believed to be for $12 million, was recently settled, with Universal Hotels now taking ownership of the venue.
It follows Universal Hotels’ recent Darlinghurst acquisitions of the Kinselas Hotel, the Brighton Hotel and the Oxford Hotel.
It’s unclear how the venue will operate going forward, with Universal Hotels managing director Jim Kospetas saying the organisation will be consulting with the community before making a decision.
“We respect the Darlinghurst community and also the Midnight Shift’s heritage as one of the state’s first gay venues,” Mr Kospetas said. “We plan to consult at length with the community in order to formulate our vision for the venue.”
The venue takes up three shopfronts on Oxford Street, Darlinghurst. Photo: Supplied
Universal Hotels declined to confirm then final sale figure.
The Midnight Shift venue had previously sold for $8.25 million in 2008 to Arunta Investments, Domain Group records show.
The building includes a full kitchen and ground floor with a capacity of 528 people.
Universal Hotels has invested heavily in the Darlinghurst precinct, as Mr Kospetas believes the area is set for a major resurgence.
“Darlinghurst, while hit hard by the introduction of lockout laws in 2014, is showing signs of recovery,” he said. “We plan to work closely with the community and with our fellow hoteliers to revitalise the area as a whole.”
He added that Oxford Street is an “amazing precinct” that is the “gateway to the eastern suburbs”.
Midnight Shift has been well-known for its drag shows and trivia nights, and its closure last year was met with an outpouring of grief and disappointment.
Midnight Shift director Mark Mader posted a message on the venue’s Facebook page following its closure.
“My heart is broke (sic) and sad for the loss,” Mr Mader wrote. “For those who supported the venue, thank you, and who grew up there, take care (and) always be proud of yourself.”
“The Midnight Shift has always been about the gay community, diversity and acceptance.”
The deal was brokered by the Oxford Agency’s Steffan Ippolito and Dimitrios Franze, who could not be contacted for comment.
