Rich lister buys pub near Byron for $15m
Expanding their holdings: Craig Laundy with his father, Arthur, at the Oxford Hotel in Drummoyne. Photo: Louise Kennerley

Rich lister buys pub near Byron for $15m

Financial Review Rich Lister Arthur Laundy has picked up his second pub in regional NSW this year after partnering with publican Fraser Short to acquire the Illawong Hotel at Evans Head south of Byron Bay for around $15 million.

The acquisition follows Laundy Hotels buying the Lennox Hotel near Byron Bay for more than $40 million in February.

High net worth capital is pouring into pub real estate, including many venues in regional locations, amid a recovery in trading performance, an easing in restrictions and record low interest rates.

The acquisition of the Art Deco Illawong Hotel was via a syndicate comprising Laundy Hotels, Mr Short’s Sydney Collective, Mr Laundy’s daughter Justine Tindall and her husband Nick Tindall.

Nick Butler and Steve Pursell from Pub Brokers & Advisory sold the hotel as a freehold going concern. The property’s freehold was offered by Janice and Kenneth Harper and the business interests by operator Daniel Simpson.

The Illawong Hotel is the only pub in the coastal town of Evans Head, which lies an hour south of Byron Bay and 30 minutes from Ballina Airport.

The building, set on a 2,200sqm site, includes 15 gaming machines, 18 accommodation rooms and an attached retail store.

“We think this is just a sensational coastal hotel in a town that’s already on a great trajectory,” said Mr Tindall.

“Justine and I are excited to be partnering with [Sydney Collective], as well as her broader family.”

Mr Butler said the Illawong Hotel’s strong hospitality business attracted the interests of the Laundy family and Fraser Short.

Back in Sydney, the Gallagher family has sold its second Sydney hotel this month after divesting the Union Hotel in North Sydney for $20 million.

The Union Hotel was sold to Sydney operators GoodBeer Company led by John Azar. Good Beers’ portfolio currently also includes the Commodore Hotel, McMahons Point and the KB Hotel, Surry Hills.

JLL Hotels & Hospitality Group managing director John Musca and senior vice president Ben McDonald negotiated the off-market sale.

The Union occupies a 784 square metre site with two floors offering over 1200 square metres of trading footprint. The hotel includes 21 gaming machines, three bars, a restaurant and function rooms.

“We are very excited about bringing the Union into the group and to servicing the North Sydney community, creating a special hospitality experience for locals,” Mr Azhar.

Mr Musca said post COVID-19 demand was “driving an extraordinary level of transactional activity, in what remains a highly regulated and protected asset class”.

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