This article is from the Australian Property Journal archive
SYDNEY hotelier Simon Tilley has acquired the leasehold interest of the Greenwood Hotel in North Sydney for $10 million.
CBRE’s Daniel Dragicevich and Sam Handy negotiated the sale on behalf of The Balmain Pub Group as part of its portfolio sell-down.
The group has recently sold the Swanson Hotel in Erskineville and the Town Hall Hotel, also in Balmain.
Tilley is the owner of the Sydney CBD’s New Windsor Hotel and recently purchased Verandah Bar.
The historic Greenwood Hotel was originally built as a church in 1878. It encompasses 1,761sqm and includes multiple bars, function rooms, outdoor areas and gaming area.
Dragicevich said the keenly contested campaign for the Greenwood Hotel is in line with a recent market shift towards high cash flow leaseholds, which are traditionally sold on more attractive multiples than the traditional freehold going concern model.
“Experienced operators understand that if the rental ratios are right these types of assets are irreplaceable.
“For this very reason, there have been only owners of the Greenwood over its 25-year lifespan. This, coupled with the continued redevelopment of the North Sydney CBD, means the incoming owner is well positioned to continue the Greenwood’s legacy and elevate the business even further,” he added.
The hotel is located immediately above North Sydney train station, bus interchange and Mirvac’s Greenwood Plaza, which comprises more than 100 retailers and 273 car parks.
Australian Property Journal
