Gladstone Hotel and neighbouring Local Liquor Superstore, with adjacent bottle shop Little Bottler – three separate Dulwich Hill holdings and liquor licenses – have sold to ASX listed Redcape for $38 million.
The freehold going concern deal was finalised two weeks after JLL Hotels & Hospitality closed a select tender process.
It is New South Wales’ largest hotel transaction since the March COVID shutdown.
The incoming owner will undertake a major renovation of the historic building at the south west corner of Marrickville and New Canterbury roads.
With the two shops – 572 Marrickville Rd and 414 New Canterbury Rd – the assets contain 1300 square metres of lettable area.
Vendor Craig Coote, who owned the watering hole since 1977, was represented by Ben McDonald and John Mosca (story continues below).
Market able to see past near-term volatility: agents
“Located in a desirable and densely populated inner west suburb and with limited local competition, buyer engagement with the asset was highly anticipated,” the agents said of the offering.
“The result provides further evidence of the market’s ability to see past near-term volatility and pursue assets with confidence where there exists a compelling investment narrative fuelled in this case by the dominant local trading opportunity and record low interest rates,” Mr McDonald added.
“We’re witnessing an astonishing transactional crescendo to the year in the hotel asset class reflecting an alignment of various owner motivations with a range of corporate and private investment drivers,” according to Mr Mosca.
Gladstone Hotel is licensed over three levels, adjacent to a council owned car park and within a popular retail strip. Dulwich Hill is 7.5 kilometres from Sydney.