Oscars invests again in Adelaide
Sydney based Bill and Mario Gravanis are continuing a push into Adelaide, this time via a large format hotel with revenue led by gaming.
Via Oscars Group, the brothers are paying $22 million for the freehold going concern of the Paradise Hotel, 12 kilometres north east of the CBD.
The seller is Greg Maitland’s GM Hotels, which bought it in 2009 to occupy.
It has been upkept – with a renovated bistro. There is also a public bar, function spaces and beer garden.
The gaming lounge has 33 electronic gambling machines but the venue is permitted for seven more.
The 8500 square metre Urban Corridor zoned site offers “significant” development upside, JLL agents, John Musca, Will Connolly and Ben Parkinson, said.
A 2500 sqm is available for immediate development could yield a residential, commercial or essential services product, like a medical centre, they added.
There are also 104 car parks.
The deal comes five months since Oscars Group paid third generation publican Greg Fahey c$80m for the freehold going concern to three Adelaide pubs – the group’s maiden South Australian investments.
“In recent years, the SA pub market has witnessed an unprecedented surge of interstate capital with volumes recently exceeding $500m from cross-border activity alone,” Mr Connolly said.
“Eastern seaboard hotel groups have identified South Australia as a market offering exceptional opportunities for assets of scale, underpinned by favourable regulatory environments and compelling value propositions compared to their home markets,” he added.
Paradise Hotel
SA Brewing Co owned the Paradise Hotel at 700 Lower North East Road for nearly 32 years prior to 1994.
The complex was developed in the early 1960s.
“The Paradise Hotel represents a highly strategic divestment which can now allow me to focus on further opportunities within the local market,” Mr Maitland said following the sale.
He still holds in Adelaide the Whitehorse Inn at Bolivar and Pier Glenelg.
GMs portfolio also includes the St Francis Winery at Old Reynella.
De Angelis family sell west Sydney pub
Meanwhile the De Angelis family’s DHL Hotels has sold the Bath Arms Hotel, in Sydney’s west Burwood.
Near the proposed Burwood North Metro station, the two level building with a bar, bistro and gaming room with 30 electronic gambling machines, is permitted to trade until 3am.
Also with 16 accommodation suites, the renovated asset generates annual revenue circling c$8m.
The vendor, including company founder Arch and wife, Robyn, which he is in a legal dispute with, will focus on its pipeline of greenfield and brownfield developments.
Robyn is hospitality veteran Arthur Laundy’s sister.
DHL was represented for the sale by HTL Property’s Dan Dragicevich, Sam Handy and Andew Jolliffe.
The buyer is as yet unknown.
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