Marlborough Pub on the auction block
Business mates Geoff Dixon and John Singleton and investment banker Mark Carnegie have put The Marlborough Hotel in King Street, Newtown, on the market.
It’s all part of their plans to reshape their pub portfolio and the high-profile owners are set to reap about $35 million from the sale.
They bought the hotel for $12.175m in 2012 when they were out snapping up iconic pubs around Sydney.
The trio manage the pub owned by Riversdale Group, which was founded by Paddy Coughlan.
The pub has been prepared for the sale with operational improvements in the gaming room, and a development-approved rooftop terrace.
Ray White Asia Pacific director Andrew Jolliffe is the man selling the pub and as far as he can see, it’s all upside.
"The Marlborough is the most significant freehold hotel currently on the market nationally in Australia, and not surprisingly following over 20 A-grade freehold hotel sales in the most recent six months, we've been commensurately inundated by high-quality domestic and international inquiry," Mr Jolliffe told the Sydney Morning Herald.
"Fundamentally, this is a landmark hotel, and for generations has drawn robust patronage from the local residents, proximate Sydney University campus constituents as well as the large shift-worker base at Royal Prince Alfred Hospital just down the road."
He also pointed to the increased popularity of Newtown as an entertaining and dining precinct, an area that’s increasingly attractive because it lies beyond Sydney's lockout zone.
"We've sold a number of Newtown Hotels before, and many to tier 1 and particularly well-known hospitality operators, but not all such operators are currently represented in Newtown; and that's been the exciting revelation for us in terms of the commencement of the campaign, with strong interest from key parties representing hugely successful hospitality and property-based businesses," he said.
"Apart from the sheer size of the corner block, of about 1000 square metres and over multiple levels, is the potential for huge upside in the form of the DA-approved rooftop area.
"Several examples of which, including the Republic Hotel in Pitt St and The Glenmore Hotel in Sydney's Rocks precinct, are illustrative of the potency of evocative al fresco spaces in densely populated suburbs; a phenomenon originating from New York's progressive boroughs such as Manhattan, Brooklyn and Queens."
by Leon Gettler, February 16th 2017
