The incessantly acquisitive Laundy Hotels, led by hospitality industry supremo Arthur Laundy, has bought its fifth Wollongong pub.
Mr Laundy heads a syndicate that includes daughter Justine and son-in-law Nick Tindall that bought the Cabbage Tree Hotel at Fairy Meadow for just over $12 million from vendor Mike Courtney, who had owned the property for close to 40 years.
Operators Brad and Corrina Young, long-term leaseholders and operators of the Cabbage Tree, have also taken a stake along with well-known local publican Mark Molloy, who put the deal together.
“It’s a very exciting opportunity, there’s a number of young investors in that one, so it’s a good chance for them to buy a stake in a hotel with Arthur Laundy,” said Jarrod Kennedy from Laundy Hotels.
The off-market sale was brokered by Ben McDonald and Kate MacDonald from JLL.
“The new ownership structure will see a ‘re-stapling’ of the freehold and leasehold interests for the first time in decades [and] is set to unlock significant potential for the new owners,” Mr McDonald said.
The Cabbage Tree Hotel has 15 gaming machine entitlements and is on a 4740 square metre Princess Highway site, offering significant development potential.
Bought on a capitalisation rate of about 11.5 per cent, shareholder Mark Molloy said the pub has a strong local following and excellent growth potential.
“It was an arbitrage opportunity by being able to put the lease and freehold back together,” Mr Molloy said.
“We’ll invest back into the property and would like to renovate and pursue the suburban family-friendly pub model.”
Mr Molloy is a co-investor alongside Laundy Hotels in three other local pubs, the North Wollongong Hotel, the Balgownie Hotel and The Charles Hotel, which are all leased to Endeavour Group.
Laundy Hotels also owns and operates the Albion Park Hotel on the southern edge of Wollongong.
The Cabbage Tree is the ninth pub purchase this year by members of the Laundy family, who have either bought or sold almost $200 million in properties since January.
They include Arthur Laundy and son Stu paying $38 million for the Bayview Hotel at Woy Woy on the NSW central Coast in late October.