Sydney’s Cargo Bar up for sale
by Leon Gettler
Sydney’s iconic Cargo Bar at King Street Wharf is on the auction block.
The venue’s owners, the Keystone Group, have decided to sell the primo location venue so that it can expand into other markets.
Keystone's executive chairman, Richard Facioni, said the strategy is all about the group’s future growth which includes expanding its burgeoning restaurant and bar businesses beyond Sydney.
He said this had been part of a strategic review which had which seen the group selling the Newton Hotel to the Chris Morris-backed Colonial Hotel Group.
"As a result of that strategic review, the decision was made by the board of Keystone to release some of the significant capital we have invested in the King Street Wharf precinct and to reinvest that capital into new growth opportunities" Mr Facioni told the Sydney Morning Herald.
"While the sale of the Newtown Hotel was via an unsolicited approach, that the sale was consistent with Keystone's strategic direction and further reinforced the group's decision to focus on its core growth business.
"We are now being presented with a number of exciting opportunities across the country, including in Melbourne where we currently have no presence. The sale of Cargo will allow us to accelerate some of those growth plans."
The hotel has been a key part of Sydney’s bar scene since it opened around the time of the 2000 Olympics
Strategically located, it’s a favourite spot for thousands of weekly harbour cruise patrons departing and returning from large floating corporate events to and from the venue's front door.
No price expectations have been disclosed for the sale which is being managed exclusively by Andrew Jolliffe and Joel Fisher of Ray White Hotels Australia.
But Mr Fisher says a business like Cargo would enjoy significant international appeal, particularly with its history of consistent cash flow generation.
"We feel confident that this feature, coupled with the enviable harbour side location, will make for some keen interest from a range of local and international sources," Mr Fisher told Fairfax Media.
14th March 2016
