Bowden sells pubs for $90 million
The Bowden family, which has been in the pubs game for 40 years, has picked up $90 million from the sale of its two Sydney hotels, the Hurstville Ritz and the Cabramatta Hotel.
The Bowden Group sold the Hustville Ritz to pub baron Nelson Meers Hotel Group for $45 million
The Cabramatta Hotel in Sydney’s outer west, was also sold for $45 million to the existing tenant, the Moelis Australia Redcape Hotel Group. The tenancy over that pub expires in 2022. Still, the tenant has two 15-year options.
Stephen Bowden, the former Newtown Jets front rower who is now the Bowden Group head, bought the Hurstville Ritz in 1979 and sold it in 2007 for $52 million and subsequently repurchased the hotel for $30.5 million in early 2011.
At the time, it was regarded as one of the top real estate deals.
The Bowden Group acquired the Cabramatta Hotel in 2010 as a freehold investment with NLG as the tenant. Moelis moved in later, acquiring NLG.
The Hurstville and Cabramatta hotels are well equipped with 30 gaming machine entitlements.
The hotel sales come at a time when the pub market is booming and the Bowden Group is selling out to take advantage of that. Also, there is the prospect of retirement.
Recent sales have included hospitality entrepreneur Justin Hemmes last week expanding his pub empire and paying more than $30 million for the Royal Hotel Bondi in Sydney’s Eastern suburbs. The Moulding family had operated that pub for 40 years.
Hemmes’ Merivale Group is expected to undertake a major renovation to reposition the hotel. It also bought The Collaroy hotel on Sydney’s northern beaches for about $21 million.
Added to that is the $50 million Hemmes spent buying the Newport Arms.
Hemmes has also acquired the Tennyson Hotel in Mascot for $37.05 million.
by Leon Gettler, November 16th 2017
