Sydney’s Republic Hotel joins pub sale rush
An international property fund has become the latest player to join Sydney’s pub boom snapping up city watering hole The Republic Hotel from the Ryan family.
The fund joins the likes of hospitality king Justin Hemmes who has been buying pubs as prices in the city approach eye watering levels.
The bar tsar last week bought the Vic on the Park in inner-city Marrickville as he keeps up the rapid-fire expansion of his empire and the latest deal is also rumoured to have topped the $20 million mark.
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That hotel was sold by the Australian Pub Fund, which is backed by high-profile businessmen Mark Carnegie, John Singleton and Geoff Dixon, as they trim their holdings.
But the operator of The Republic, which spans three city streets, and recently underwent a multimillion-dollar renovation, will stay in place while the freehold property is sold.
The Republic Hotel is rumoured to have sold for more than $20 million. Picture: The Republic Hotel.
Under the deal, well-known hotelier Patrick Ryan entered into an agreement to lease back the business operation of the asset after 17 years of ownership of the four-storey hotel.
Ray White Hotels agent Andrew Jolliffe handled the sale of the hotel on the corner of Pitt and Bridge Street in Sydney’s CBD.
Jolliffe says interest in top class property in Australia’s gateway cities remains robust.
“Sydney is enjoying a demonstrable surge in infrastructure investment,” he says. “We expect that favourable market conditions will continue to underwrite strategic investment
The prices on Sydney’s best pubs have soared and Jolliffe says his group is averaging an exit yield of about 8% for its clients.
With the hotel sector performing well, he says that further yield compression remains likely.
This article originally appeared on www.theaustralian.com.au/property.
