Prominent South Hurstville pub sells
Francis Venues has sold Kings Head Tavern after 18 months.
The South Hurstville pub collected $40 million from operator Parras Hospitality, formerly known as Dyco Hotels.
The freehold going concern deal comes nearly a year since it was publicly offered with a 20 year leaseback.
The freehold going concern deal was brokered off-market.
Francis, led by Tom Francis, paid MA Financial a reported $26m before modernising it.
It holds more than 10 hotels – eight in Victoria including in Melbourne where it is headquartered, the Summerhill Hotel at Reservoir and Kealba Hotel.
Kings Head Tavern
Owned by Sydney based Colin Parras, Parras Hospitality’s portfolio contains hotel and gaming investments including the Shaws Bay Hotel in Ballina and Four in Hand in Paddington.
The South Hurstville holding spans 1334 square metres at 801A Kings Head Road, at the north west corner of Connells Point Rd, 1.5 kilometres from Hurstville’s CBD (continues below).
Over two levels it contains a bar bistro and gaming room with 27 electronic gambling machine entitlements, estimated last year to be worth over $11m in situ.
It is licensed to trade until 2am.
The revamp included an upgrade to the exterior and the kitchen. The sports bar was also updated with a three metre screen.
South Hurstville is about 20 kms south of Sydney’s CBD.
“Unsatisfied capital earmarked for Sydney hotel acquisitions continues to outweigh supply with geopolitical events and equity market dynamics corralling investors more than suggestively towards the safe harbour of property,” HTL Property’s Andrew Jolliffe said.
Co-agent Dan Dragicevich added “it was a testament to the attractiveness of NSW hotels as a collective when Francis Venues made the investment trip north”.
“The fact it has been a success underscores the value accretion and liquidity proposition that remains available in such a dynamic marketplace,” according to the executive.
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