Trio of inner-west pubs up for grabs as Petersham Inn hits the market
The Petersham Inn is set to be the latest in a string of high-profile pub sales in Sydney as renewed interest in the asset class continues.
The inn, at 386 Parramatta Road, is being marketed by Ray White Hotels Australia on behalf of a developer client by private treaty.
According to listing agent Blake Edwards, the hotel is now surplus to the client’s needs after acquiring the block with the intention of developing apartments.
Following the redevelopment the hotel, an historically listed art deco building covering 766 square metres, is now strata titled.
Different times… A brawl takes place outside the Petersham Inn, Sydney on 7 February 1947. A crowd of onlookers grew to around 200 before police resorted to drawn pistols to put an end to the disturbance. Photo: Fairfax Photographic
The inn is currently tenanted to an experienced operator for $220,000, excluding GST and outgoings, on a 25-year lease.
According to Mr Edwards, the hotel’s nine poker machine entitlements are likely to be a key attraction for any buyer, as well as the 3am liquor licence.
“The value proposition for this passive investment lies not only in the substantial city fringe commercial real estate holding but also the inherent value of the nine poker machine entitlements and the associated hotel licence,” he said.
Mr Edwards is also currently marketing the leasehold interests in the nearby Camperdown Hotel and the Annandale Hotel.
Inside the Annandale Hotel, which has recently been renovated. Photo: Dominic Lorrimer/Fairfax Media via Getty Images
Both campaigns are by expressions of interest, set to close on June 2, 2016.
“We have presently garnered significant momentum in these city-fringe and inner-ring markets which are particularly attractive to both passive investors and traditional operators alike as demand increases for quality assets positioned higher up the yield curve when compared to CBD freehold hotels,” Mr Edwards said.
The listings follow the recent success of Ray White Hotels Asia Pacific director Andrew Jolliffe in negotiating the sale of the Terminus Hotel in Pyrmont and the Australia Hotel in Chippendale – both sales having occurred within the last two months.
