This article is from the Australian Property Journal archive
LISTED publican Lantern Hotel Group has sold Botany’s Waterworks Hotel for $17.228 million – a 65% premium to the June 30 book value.
The pub has been on the market for only two weeks and has sold ahead of the close of expressions of interest campaign on December 13.
Settlement of the sale is expected to occur in February 2017.
CBRE Hotels’ Daniel Dragicevich and Sam Handy handled the expressions of interest campaign.
The Waterworks Hotel was ranked 198th for gaming revenue in OLGR’s recent September quarter TOP 200 report.
Dragicevich said there was also significant growth potential, given the hotel’s rare 24-hour liquor licence with 3-hour gaming shutdown and location in one of Sydney’s strongest gaming LGA’s, with surrounding pubs ranked 54th, 70th and 87th in the TOP 200 report.
“The hotel has been achieving an average weekly gaming turnover of $784,528 and a net profit of $65,658 over the past 19 weeks. Only six of its 26 gaming machines are currently outdoor and there has been recent DA approval for a new alfresco gaming room. There is also scope to increase the number of machines to the full complement of 30,” Dragicevich said.
The Waterworks Hotel is located on a prominent 902sqm site within the main retail and commercial heart of Botany. The site offers future redevelopment potential for residential apartments and short term accommodation underpinned by its B2 – local centre zoning, 14m height approval and generous 2:1 FSR.
This transaction comes hot on the heels of Lantern selling its flagship asset, The Five Dock Hotel in Sydney’s inner west, within a week of listing for $28.75 million – a 38% premium to book value.
The sale is part of Lantern’s divestment strategy. The group also divested the Ambarvale Hotel for $21.2 million, representing a 50.2% premium to book value. Lantern also offloaded the Uncle Bucks Hotel and adjacent commercial precinct in Mount Druitt, New South Wales for $25.3 million, at a 30.5% premium to book value.
The group has also entered into contracts for the sale of its Brisbane Hotel in Perth for $9.5 million; the Commodore Hotel in North Sydney for $14.5 million; and Central Hotel in Bundaberg for $1.95 million.
Australian Property Journal