This article is from the Australian Property Journal archive
THE Oxford Hotel has sold for $34 million in the second largest gaming property transaction this year.
Owned by the Iris Capital Group, the property occupies a combined 974 sqm site area with future height development potential and the scope for a rooftop bar. The sale included 30 gaming machines, new beer garden and basement parking additions.
Located at 195 Victoria Rd Drummoyne, the asset is one of inner west Sydney’s most popular venues, having recently undergone a $4 million revamp.
CBRE Hotels national director Daniel Dragicevich and JLL national director John Musca negotiated the sale on behalf of Iris Capital, which has had a busy year, selling interests in the Crest Hotel, Kings Cross and the Crown Hotel Parramatta to Chinese development group Greenland.
Dragicevich said the sale was continued evidence of buyer demand for premium hospitality assets.
“The Oxford Hotel is a true AAA-grade diversified hotel and the result achieved reflects the scarcity of such quality assets in the Sydney metro market.
“The market has again experienced a year of high asset turnover and sales activity as the spread between capitalisation and borrowing rates remains attractive to both existing participants and new entrants into the pubs sector,” Dragicevich said.
“This asset is a rare example of a strong gaming centric venue that also has significant and growing contributions from on-premise bar and food revenues, which is a unique balance reserved for hotels with limited competition in high density precincts,” Dragicevich concluded.
Australian Property Journal
