Feros swoops on Engadine Tavern amid pub surge
Feros Hotel Group has bought the Engadine Tavern.
Sydney’s pub market is roaring back after a hiatus ahead of the NSW state election, when the former Perrottet government proposed sweeping reforms to the gaming sector, with the Feros Hotel Group swooping on the Engadine Tavern in the city’s south for about $35m.
The newly minted Minns government is putting in place less onerous trial measures, with the pub deal another sign that the froth remains in the market, and despite rising interest rates revenues are expected to hold up even in the face of an economic slowdown.
The hotel in the Engadine town centre is surrounded by retailers Woolworths, Coles, ALDI and Dan Murphy’s, and apartments are being developed on a neighbouring car park that was once part of the property.
The hotel was sold by a joint venture headed by hotelier Peter Ashelford, which had picked up the hotel and unit site for $31m from White & Partners in early 2021.
The larger site carried planning approval, and the selling venture is developing 64 luxury residential apartments on what was the hotel’s adjacent car park. Now under construction and close to being sold out, the project, known as The Heritage Apartments, has been subdivided from the hotel.
Feros Hotel Group is buying the pub and multiple retail properties – some of which were added by the venture during its ownership. It will add to the Feros portfolio in the Sutherland Shire venues, including The Prince at Kirrawee, Highfields Hotel in Caringbah and the Taren Point Tavern. FHG also recently received approval for its Parc Pavilion development in the heart of Cronulla.
“We are extremely excited to take the reins of the Engadine Tavern, an asset and operation that fits our model perfectly; and we aim to continue to serve the local community within which we are already deeply entrenched,” managing director Chris Feros said.
Feros Hotel Group has bought the Engadine Tavern.
The Engadine Tavern business generates more than $7m in annual revenues across bar, bistro, gaming, wagering and retail liquor. The business features a 1am liquor licence with 26 gaming machines. Adjoining retail tenancies deliver a passive income stream and agents HTL Property noted the deep interest in the sector.
“The campaign generated great interest from both hoteliers interested in reinvigorating the offering through to developers, land bankers and investors who were attracted to the site’s strategic land holding, which offers flexible redevelopment and site amalgamation options,” HTL Property director Sam Handy said.
“The sale to a well-regarded and experienced organisation such as the Feros Hotel Group is a distinct vote of confidence in the hotel sector; and exemplifies a flight to quality, high floor value assets,” HTL Property director Dan Dragicevich said, adding that the mix of trade made the pub essentially recession-proof.
The firm has struck 16 pub sales in the first 16 weeks of the year, topping more than $500m in total. “It remains our considered view that the national marketplace is on the precipice of a period of unprecedented transaction activity,” HTL Property managing director Andrew Jolliffe said.
