Four of bankrupt publican Jon Adgemis’ venues sell for $130m
Receivers of bankrupt publican Jon Adgemis have sold four of his Sydney venues including the South Bondi Hotel, Hotel Diplomat, the Empire Hotel and Claridge House for about $130 million.
McGrathNicol was appointed as receiver to manage five assets of Public Hospitality’s portfolio in October, four of which have now been sold. The Exchange Hotel in Balmain remains on the market.
Adgemis, an ex-KPMG dealmaker-turned-publican, accumulated $1.8 billion in debts, largely from personal guarantees he gave on loans to create Public Hospitality Group and was declared bankrupt last year. The company amassed a portfolio of 22 venues at its peak.
Tom Wallace from Millinium Capital Managers is the purchaser of Hotel Diplomat in Potts Point, South Bondi Hotel, formerly Noah’s backpackers, in Bondi Beach, and the Empire Hotel in Annandale, according to industry sources. The fourth pub, Claridge House in Darlinghurst, has been sold to another buyer, yet to be identified.
Wallace has been building a solid position in the pubs market, having purchased the Town Hall Hotel in Balmain for $9.5 million in August, the Rose, Shamrock and Thistle – otherwise known as the Three Weeds – in Paddington for about $20 million in July, and the Kurrajong Hotel in Erskineville for about $20 million in September — all of which were formerly Adgemis’ venues.
HTL Property’s Andrew Jolliffe, Andrew Jackson and Sam Handy, as well as Colliers’ Matthew Meynell, Karen Wales and James Cowan jointly managed the sales campaign for South Bondi Hotel, Hotel Diplomat and Claridge House. HTL Property exclusively managed the campaign of the Empire Hotel.
“The portfolio of assets offered to market have been acquired by more than one independent buyer group,” Jolliffe said. “The speed at which they have all transacted speaks to the market appetite for built form, high presence hospitality opportunities in gateway precincts.”
Meynell said the latest sales were generated through one of the most active on-market processes he had been involved with.
“[There were] consolidated enquiries exceeding 580, and incorporating 46 first round offers to purchase, consisting of Australia’s most recognised hospitality and tourism investors,” he said.
Adgemis purchased the South Bondi Hotel for $68 million and Hotel Diplomat for about $16.5 million in 2022, according to Cotality data. He had planned to turn the South Bondi Hotel, a former 260-bed hostel, into a hotel at the time of the purchase. The Empire Hotel was bought by Adgemis in 2021 for $12 million.
The Clifton Hotel in Kew, Melbourne’s inner east, also remains for sale with market sources valuing it at about $8 million. Adgemis bought the venue for $6.8 million about four years ago.
