Receivers sell ex-Noah’s Backpackers
Receivers have sold arguably the highest profile property in the portfolio of bankrupt hospitality entrepreneur Jon Adgemis’ Public Hospitality Group.
The former Noah’s Backpackers on Bondi Beach is understood to be collecting $60 million.
The buyer is believed to be Millinium Capital Managers, led by Tom Wallace.
It would be the sixth pub the company acquired from receivers Public Hospitality Group lenders.
The others are Annandale’s Empire Hotel (for a rumoured $21m), Balmain’s Town Hall Hotel ($9.5m), Erskineville’s Kurrajong Hotel (c$20m), Paddington’s Three Weeds ($20m) and the Hotel Diplomat at Potts Point (c$20m).
$150m spend
Mr Adgemis paid the Harkham family $68 million for the row of three buildings covering 2-12 Campbell Parade forming the ex-Noah’s Backpackers – later changing its name to the South Bondi Hotel.
On 886 square metres, part zoned B4 Mixed Use and R3 Medium Density, the 260 bed ex-hostel could make way for something taller – up to 12.5 metres or five levels.
Public Hospitality won approval to refurbish the building with 53 accommodation rooms, multiple bars and an activated rooftop.
The sale was brokered for McGrathNicol by Colliers’ James Cowan and Matthew Meynell with HTL Property’s Andrew Jolliffe, Sam Handy and Andrew Jackson.
Universal buys Claridge House
Meanwhile, Universal Hotels has swooped on another Public Hospitality asset – Darlinghurst’s Claridge House – for $19m.
The nine level Art Deco flatiron building, developed in the 1940s at 28-30A Flinders Street contains 63 boarding rooms – all up with 2169 sqm of building area.
It was offered as a cold shell allowing for a repurpose, perhaps to a co-living asset.
Instead, it will be revamped as a boutique hotel possibly with ground floor retail (continues below).
“Claridge House presented as an excellent opportunity for our continued growth and diversification,” Universal chief executive officer, Harry Kospetas, said.
“It’s an asset with enormous potential located within a precinct we know very well – it’s a really good fit for us,” he added.
Mr Cowan and Mr Meyell with colleague Karen Wales were the agents.
In two rounds, 17 offers came in, they said.
“This was a complex asset that required a capable buyer with both operational expertise and balance sheet strength,” they added.
McGrathNicol was again the receiver; Jonathan Henry, Katy Sozou and Damien Pasfield were the representatives.
More to come
At its peak, Public Hospitality Group held 22 properties.
The Federal Court bankrupted Mr Adgemis in October.
Receivers are speculated to have sold The Exchange in Balmain for c$30m.
Meanwhile, Solotel bought the the Camelia Grove Hotel in Alexandria, at the Eveleigh border, Paddington’s Oxford House and the Norfolk in Redfern.
The Strand, in Darlinghurst, is also expected to be sold soon.
In Melbourne, the Clifton Hotel at Kew Junction, once occupied by Guy Grossi’s Puttanesca, was listed for sale last year.
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