Feros family secures Padstow Park Hotel for $26 million
The Feros family-owned company JDA Hotels has snapped up the Padstow Park Hotel in south-west Sydney for $26 million.
The gaming pub, at 31-33 Howard Road, Padstow, was managed by the Sydney-based JDA Hotels but owned by real estate investment advisory White and Partners.
The 2700-square-metre site sold under the hammer on Wednesday morning at Ray White Commercial NSW’s public auction.
The pub, opposite Padstow train station, was refurbished recently. Photo: Supplied
The property comes with the hotel license, the gaming entitlements including 20 poker machines and the bottleshop, which would be run by Coles. The sale also includes a recent extension of gaming room trading hours to 2am.
White and Partners bought the property for $13.7 million from Wesfarmers hospitality arm Coles Liquor in 2014.
JDA Hotels, led by John Feros and siblings Dean Feros and Alexandra Henderson, runs 10 venues across Sydney and the Gold Coast, including the Great Southern Bar and Charlie Chans at George Street, Sydney, and Hotel CBD at Varsity Lakes in Queensland.
“We clearly know the hotel, and have a good appreciation of the area, having operated hotels in that part of Sydney for decades,” John Feros said.
“We are active buyers in the market, and will continue to seek and transact upon well located opportunities where we see we can add value.”
New owners JDA Hotels also operate nine other pubs across Sydney and the Gold Coast. Photo: Supplied
The pub’s average weekly revenue year-to-date 2018 is about $130,000, excluding GST, with gaming bringing in more than $81,000.
While the auction opened at $24 million, Ray White auctioneer Jason Andrew made it plain to bidders what the vendors were expecting.
“Let me be abundantly clear, buyers, at $25.8 million, I can’t sell it. If you make your offer at $26 million, I can sell it,” he said.
Three bidders competed in the auction, making seven bids before the gavel fell at $26 million.
Ray White Hotels agent Andrew Jolliffe, who sold the property with Blake Edwards, said the hotel received an “extraordinary level of interest”.
“The market remains particularly active at present with the bandwidth of sales for A-grade hotels operating between 7 per cent and 8.5 per cent,” Mr Jolliffe said, adding that the low interest rates were also a factor.
“Nationally, this industry is better funded, guided and operated than at any other time in its long history, lending itself to continued market strength and investment grade longevity.”
Two other properties also sold at the auction, including a 53-square-metre retail space in Newtown, which fetched $732,000. A line of five retail shops and seven car spaces in Petersham secured $2.4 million exclusive of GST.
The Grand View Hotel at Wentworth Falls was withdrawn from auction and remains on the market.
