Simon Tilley snaps up Greenwood Hotel
Sydney hotelier Simon Tilley has acquired one of Sydney’s most recognised pubs, the Greenwood Hotel, for just over $10 million.
Strategically, it’s a significant acquisition with Tilley expanding his CBD based portfolio to the north shore with the acquisition of the Greenwood.
The Balmain Pub Group put the Greenwood, a picturesque sandstone pub, on the market in April.
BPG principal Nick Willis said the “timing is right to re-evaluate” with the passing of one of BPG’s major partners.
It’s actually the third most recent sale for BPG. The group has embarked on a strategic reshuffle that has earned it nearly $25 million following the divestment of its Town Hall hotel in Balmain and Erskineville’s Swanson Hotel.
Tilley said it was the right for the acquisition with the pub real estate market now in full swing and freeholds selling at record prices and the leasehold market offering higher returns for smart operators ready to back their operational skills.
“I’m very excited to be involved with such an iconic North Sydney pub institution,” Tilley told PubTic. “I have two fantastic new locations, which is key for me.
“The industry is full steam ahead. We look forward to getting in there and continuing to deliver good service, good food and good times.”
Tilley was not ruling out making further acquisitions if the “right deal, right price” came along.
CBRE Hotels has managed the three BPG pub sales and national director Daniel Dragicevich said the returns on hotels like the Greenwood are compelling.
“The keenly contested campaign for the Greenwood Hotel is in line with a recent market shift towards high cash flow leaseholds, which are sold on more attractive multiples than the traditional freehold going concern model,” Dragicevich told PubTic.
“Experienced operators understand that if the rental ratios are right these types of assets are irreplaceable.
“The Greenwood has had only two owners over its 25-year lifespan for this very reason, and when coupled with the continuing redevelopment of North Sydney CBD, the incoming purchaser is well-positioned to continue the Greenwood’s legacy and elevate the business even further.”
by Leon Gettler, June 8th 2017
