Charter Hall has teamed with Endeavour Group to acquire Terrey Hills Tavern, in Sydney’s Northern Beaches.
The deal involves the former paying $26.3 million for the freehold.
The latter, which was last month spun off from Woolworths, will spend c$13.5m on the leasehold.
Vendor Feros Group, led by Nick and Chris Feros, had held it 16 years.
The company temporarily offered the asset in 2017, withdrawing it after selling Arncliffe’s Rocksia Hotel to Bill and Mario Gravanis’ Oscars Hotels for $36m.
Terrey Hills Tavern
On 1.59 hectares at 2 Aumuna Road, Terrey Hills, the tavern was marketed for its development upside – or potential for part to be subdivided and sold down.
The hotel generates annual revenue in excess of $10 million.
It also contains 20 electronic gambling machines (story continues below).
Endeavour, via its ALH division, has signed a 15 year lease.
Charter Hall will hold the asset in its Long WALE Investment Partnership (LWIP), which is backed by super fund Hostplus.
HTL Property’s Dan Dragicevich, Brent McCarthy and Andrew Jolliffe closed an expressions of interest campaign for Terrey Hills Tavern on June 3.
LWIP holds 60 assets worth a total of $428.2m.
Last year the fund paid the Dowling family $19.7m for Darwin’s Parap Tavern – which is also tenanted to ALH.
In 2018 it outlaid $22m for a Waterford West (Brisbane) site with the Club Hotel and a standalone bottle shop.
Endeavour, which floated at a value close to $11 billion, owns several operations and the BWS, Cellarmasters and Dan Murphy’s liquor chains.
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