Justin Hemmes pounces on The Collaroy
Pub baron Justin Hemmes has just acquired northern beaches watering hole The Collaroy for about $21 million.
The pub, secured through Hemmes’ private Merivale operation, is in addition to a number of pubs Hemmes has acquired.
The last pub he snapped up was the Tennyson Hotel in Sydney’s Mascot for $37 million.
So The Collaroy has been added to his growing empire which also includes The Ivy and Establishment, The Newport, the Coogee Pavilion, The Paddington Inn, The Alexandria Hotel, The Oxford Tavern, the Queens Hotel in Enmore and other flashy spots.
Hemmes has been looking to expand into Sydney’s key and popular precincts unaffected by the city-zoned lockout drinking regulations. It’s an empire that stretches from Sydney’s northern beaches to the CBD to the inner south.
There is now market talk that the pub real estate boom might be peaking with the purchases by Mr Hemmes and investment bank Moelis, which has acquired the $677m Redcape Hotel Group portfolio of 26 top-performing gaming pubs and associated shops in NSW and Queensland.
At the same time, however, the deals are being driven by some well-established publicans.
And in the case of Moelis, the market talk is that the bank plans to list the acquisition on the stock exchange.
Mr Hemmes, chief executive of Merivale, was enthusiastic about his latest pub.
He said The Collaroy’s location was “truly spectacular” with its sweeping views of the ocean.
“This is a really exciting addition to the group, and one that will beautifully complement what we’re creating at The Newport,” Hemmes told The Australian.
Hemmes had bought The Newport for something near $50 million in 2015 and the pub is now being redeveloped.
“I love the northern beaches; it is a magnificent area and we are incredibly proud to be part of it,” Hemmes told The Australian.
The Collaroy was sold by Mitchell Waugh’s Public House Management Group.
Earlier this year, that group had acquired Sydney’s Toxteth Hotel in Glebe for $20 million from high-profile businessmen John Singleton and Geoff Dixon’s Australian Pub Fund.
by Leon Gettler, August 14th 2017
