Ex-Wallaby scores another Sydney pub

The Chippendale venue has a 24 hour liquor licence.

Ex Wallaby Bill Young has added to his hotel portfolio – which is entirely in New South Wales – picking up Chippendale’s historic Bar Broadway.

The off-market deal for the 1940s venue at 2 Broadway, opposite the Sydney University of Technology, is speculated to be worth c$36 million.

Young Hotels recently purchased Ryde’s Royal Hotel. Image: Google Street View.

It is the first time in nearly two decades the leasehold and freehold for the property previously known as The Sutherland were bought together.

JLL Hotel & Hospitality’s John Musca and Ben McDonald with Knight Frank’s Mike Wheatley were the agents.

“Situated on the doorstep of Sydney’s new Tech Central precinct, Bar Broadway is set to capitalise on the enormous growth potential of the area, with over 250,000 sqm of new office space in the pipeline, creating 25,000 innovation jobs in the process,” they said.

The outgoing operator will now retire while the former landlord will pursue other interests.

Bar Broadway

Developed in the 1940s, Bar Broadway occupies a 455 square metre site, walking distance to Central station, Sydney’s biggest transport interchange.

Licensed to trade 24 hours the venue is designed with a bar and gaming room with 28 electronic gambling machines (15 entitlements, 13 permits).

The asset also includes a permit to extend the venue by two floors, increasing the accommodation component from 26 beds to 60 (story continues below).

Elsewhere in the area, Atlassian, Frasers Property Australia and Dexus are developing office projects while TOGA has earmarked a hotel.

“The compelling precinct growth story and resultant demand for this asset, further demonstrates the unabated capital appetite for this highly protected, intrinsically valuable asset-class where the very best located assets deliver perpetual earnings growth unlike any other real estate business sector,” Mr McDonald said.

Growing portfolio

The Bar Broadway acquisition comes three months since Mr Young sold Glebe’s Friend in Hand to Marcello Colosimo’s Momento Hospitality for c$11m.

The former sportsman holds a half dozen Sydney venues including Ryde’s Royal Hotel – which cost $37m last year, Mortlake’s Palace Hotel and in Five Dock, the Five Dock Hotel and Illinois Hotel.

Near Sydney Olympic Park, the publican controls Concord West’s Concord Hotel.

Outside of the city, Mr Young owns the Wisemans Inn Hotel at Wisemans Ferry.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.