Sydney's Lord Nelson tipped to sell for more than $35m
Sydney’s oldest licensed pub and one of its most famous watering hotels, The Lord Nelson Hotel and Brewery at The Rocks has been put up for sale for the first time in 35 years,
Built out of locally quarried sandstone in the late 1830s, The Lord on the corner of Kent and Argyle Streets has been serving beer and other alcoholic beverages to patrons since being granted a licence in 1842.
Under the long ownership of New Zealand-born former commodities trader Blair Hayden and his business partners, former Yalumba winery boss Robert-Hill Smith and Sydney accountant Michael Gilbert, the hotel has also been a pioneer of the booming craft beer market through its popular Three Sheets pale ale, which is sold in 125 Sydney pubs.
The trio of businessman paid just $750,500 for the property in 1986 when they bought it from the Maritime Services Board of NSW.
“We truly love this pub, however, after 35 years, we simply don’t have the energy or the resources to take the business to the next level, but we have no doubt that someone will,” Mr Hayden said.
Price expectations are in excess of $35 million for the hotel, operating business and its craft beer brands.
Situated between the Circular Quay transport and the Barangaroo entertainment and business precinct, the three-storey hotel built in the austere Old Colonial Regency style, features a basement cellar containing a fully functional brewery, ground floor public bar with brewery viewing area and original floors and fittings.
There’s also outdoor footpath seating, a first floor fine-dining restaurant and commercial kitchen and two floors of accommodation (nine rooms) and manager’s offices.
JLL’s Kate MacDonald who is taking The Lord to market alongside colleague John Musca, said she expected interest from both the big breweries and the major pub groups.
“The current private owners have done a terrific job to create and nurture the beer and brand from infancy, but the potential scale of this product for an outfit with superior resource capabilities is quite extraordinary,” Ms MacDonald said
She added that it was the first major pub freehold offering in the Sydney CBD in about two years,
The last pub to sell was the nearby Harbour View Hotel, which was acquired by fruit and veg entrepreneur Dominic Barba for $12 million in July 2019.
The offering of the Lord Nelson comes amid extremely buoyant conditions in the pub real estate sector, following a record volume of sales in the past financial year, as well as strong growth in Australia’s $1 billion craft beer market.
“The recent sale of the Stone & Wood Brewing interests to Lion Nathan for $550 million following the acquisition of Balter Brewery by Carlton United Breweries for a mooted $200 million has highlighted the growing global interest in craft brewing,” Mr Musca said.
Mr Hayden said there were opportunities to expand Lord Nelson’s craft beers into international markets and to further existing relationships in Australia, including as the bespoke beer provider for Carnival Cruise Lines.
“When cruising returns, the proposed expansion of the fleet will only offer further opportunities”, he said.
