Bull and Bush sells as pub markets kicks into gear

The Bull and Bush hotel/motel in Medowie has sold to a hotel syndicate led by Nick Quinn.

The regional pub boom is rolling on, with the Bull and Bush hotel/motel near the NSW coastal hub of Port Stephens selling for close to $30m to a local hotel syndicate led by Nick Quinn.

The property in the satellite township of Medowie is the latest sign that more deals are being struck in the pub industry as there is more certainty about the regulatory environment after the state election.

The sale of the large venue brings to an end 36 years of continuous ownership by the Feneley family.

The deal was negotiated by HTL Property’s Dan Dragicevich, Blake Edwards and Xavier Plunkett. The 13,000sq m property includes a ­single-level tavern with 30 gaming machines, a drive-through bottle shop, a separate building with ten motel rooms and two leased retail shops, as well as more than 100 car parks.

The property sits next to the major shopping precinct in Medowie, which sports both Coles and Woolworths supermarkets.

“The multipurpose property provides the incoming purchaser with ­already strong and consistent cash flows, and also various levers for ­future expansion and growth,” Mr Dragicevich said.

“The purchasers were notably ­attracted to the enormous population growth and economic development slated for the region which, according to Port Stephens Council, will see an additional 15,000 residents over the next 15 years,” Mr Edwards.

There has been a run of pub sales since the recent election of the Minns government. One factor may be that it has proposed less stringent restrictions on gaming than former premier Dominic Perrottet had been planning.

“We continue to see determined participation from established groups, despite some wider economic headwinds, particularly where latent operational upside and strategic geographical synergies exist,” Mr Dragicevich said.

Mr Plunkett noted that the state’s pub market got off to a slower than usual start this year, but this was now changing.

“With the NSW election now decided, we are seeing a continual uptick in both vendor and purchaser engagement; and we expect to announce further sales in the coming weeks.”