Adelaide’s Lion Hotel roars onto market

Super rare pub opportunity, super site, or both?

Iconic Adelaide pub The Lion Hotel is up for sale for the first time in more than 20 years, but there’s more to the potential sale than meets the eye.

The hotel will be sold with an adjoining office block, creating a huge 5000sqm site with development potential, giving buyers a raft of options.

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The offering comes as long-time owner-operators Tim Gregg and Andrew Svencis call time on their association with the popular North Adelaide venue, which they’ve owned since 1996.

“When we took over the hotel and historic brewery it was very run down and totally out of sync with the broader market and the vibrant local precinct. It’s been quite a journey, with many State and a few National Awards along the way, and more importantly a great staff and management team, and lots of wonderfully loyal customers,” Gregg says.

“We’ve been blessed with great people for years and are starting to find it a bit too tempting to ease off our own involvement these days and think it’s time to make our exit.”

The Lion Hotel sale will include a major neighbouring office site.

Renovated over the past two decades, the pub offers an established income, while the adjoining three-level office block at 183 Melbourne St has 11 tenants including well-known South Australian wool brokers the Michell Group and Mortgage Choice.

The office spans 2888sqm of lettable area and 1725sqm of land, which could form part of a much larger development, should the purchaser wish to do more with the site, according to marketing agents Will Connolly and Roger Klem from JLL.

“It will attract interest in South Australia and nationally as an attractive option for local and national hoteliers groups looking to expand their capital city portfolios or investors seeking a much higher holding income on this development site than alternative land-banking opportunities,” Connolly says.

“It is also attractive because of its long history of a consistent income combined with a staggered lease profile,” Klem adds.

“There has also been regulatory changes to lift the height restrictions so development in the future is definitely a strong option for the buyer.”

The Lion Hotel and neighbouring office building is being sold through expressions of interest, which close at 4pm on November 22.