A hotel in Sydney’s inner west has changed hands for the first time in 43 years, selling to ASX-listed Redcape Hotel Group for $38 million.
The Gladstone Hotel, in Dulwich Hill, was sold following an off-market tender process by JLL Hotels & Hospitality Group’s John Musca and Ben McDonald.
The sale also included the Little Bottler bottleshop, located across the road, and the adjacent Local Liquor Superstore. The three properties combined span 1300 square metres of freehold commercial space.
The vendors, the Coote family, had owned the pub for 43 years and Craig Coote said, “We are delighted with the outcome, in what has been an emotional experience.”
Mr McDonald said the sale was a sign of confidence in the pub sector.
“The result provides further evidence of the market’s ability to see past near-term volatility and pursue assets with confidence where there exists a compelling investment narrative fuelled, in this case, by the dominant local trading opportunity and record low interest rates,” he said.
The $38 million deal is one of the largest in Sydney this year, with the $43 million sale of Liverpool’s Macquarie Hotel to the De Angelis family also occurring after the pandemic hit in March.
And it’s unlikely to be the last major hotel sale in 2020, with JLL reporting that more than $300 million worth of deals are in the closing stages.
“We’re witnessing an astonishing transactional crescendo to the year in the hotel asset class, reflecting an alignment of various owner motivations with a range of corporate and private investment drivers,” Mr Musca said.
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