The leasehold interest in Glenquarie Tavern in Macquarie Fields has sold for a record $28 million, marking the biggest leasehold pub sale in New South Wales.
The hotel facilities included a public bar, bistro, gaming room with 30 gaming machine entitlements, bottle shop, outdoor terraces, and a two-bedroom manager’s flat.
The pub was located on a significant land holding of 5,574 sqm in the retail heart of Macquarie Fields within Sydney’s booming southwest corridor.
Previous record-breaking results for individual leasehold hotels in NSW included the All Hands Brewing House sale on King Street Wharf in Sydney for $20 million in 2020, and Fairfield’s Cambridge Tavern leasehold sale in 2018 for $18 million.
The sale, which was managed by JLL Hotels & Hospitality, was the first time the property had changed hands since it was built in 1975.
“This was an incredibly rare opportunity to acquire a family-operated Top 100 gaming asset with over 25 years remaining on the lease, including ownership of the 30 gaming entitlements, with passing rent reflecting only 14% of EBITDA,” JLL Vice President Kate MacDonald said.
“We’re always delighted to assist vendors in divesting long-held assets, however, to obtain a result such as this for a AAA business in greater Sydney, is incredibly exciting for JLL Hotels and our vendors.”
JLL Senior Vice President Ben McDonald said JLL had transacted close to $100 million in asset sales in the last week alone with almost double that at various stages of negotiation and significant new mandates on the horizon.
The deal comes after the 151-year-old Lord Roberts Hotel in Sydney’s Darlinghurst area sold for $22.5 million last month.
Other recent pub deals include Australian Venue Co’s acquisition of nine hospitality venues in Western Australia last month, as well as Redcape’s sale of the Minskys Hotel and Commercial Suites in Sydney for $39 million.
In March, Public Hospitality Group purchased he Lady Hampshire hotel and pub in Camperdown, Sydney for about $11 million, while EG and Australian Venue Co. bought The Anglers Tavern pub in Melbourne for $23.33 million in February.
Interested in pub and hospitality valuations? Read our Pubs and hospitality through the eyes of a valuer: 2022 article to learn more.