Plenty of big names were amongst the crowd that overflowed the auction room of Ray White yesterday for sale of the top-billing Tennyson Hotel and regional stronghold the Figtree Hotel.
The auction began with Wollongong’s Figtree, possessing a huge 9,300 m² site and development potential including recent rezoning to Band 3. Currently operated by the Waugh family’s management division, the FGC was on offer by the Auswild family.
Bidding began amongst several parties, but the serious players soon became clear as Tim Fallon – partner to some of the venues with the Waugh’s Public House Management Group – bid against Joel Fisher – experienced Sydney agent, bidding independently as a partner in the relatively new DenFish pubs venture between himself and noted publican Andrew Denmeade.
The will of interests by the current occupant to the Figtree proved less than that of DenFish, which already owns and operates the nearby Unanderra Hotel and award-winning Central Hotel in Shell Harbour, securing the last bid for $5.375 million with celebrity auctioneer Damien Cooley.
“We have had great success in the Illawarra with our current hotel investments, and look forward to repurposing the Figtree Hotel in the near future as well,” said Denmeade of the result.
Attention swiftly turned to the main event, where the Tennyson Hotel would be the first Top-100 gaming pub auctioned in recent times.
Similarly, bids gathered momentum until two clear contenders remained: Lesday Group’s Les and Kent Walker, and pioneering publican Justin Hemmes.
The Tennyson also boasts development potential on a 1,400 m² block, with an already approved DA by Paul Kelly to overhaul the ground floor, and its location in a precinct experiencing major growth and investment could see Hemmes create another suburban super-venue like seen at Coogee Pavilion.
Stamping conviction on the bidding, Hemmes confidently added another $50k increment past the $37 million penultimate offer, achieving the final hammer.
“Merivale has purchased the Tennyson Hotel on Botany Road, Mascot, continuing its program of expansion into thriving communities across Sydney,” came the statement.
“The hotel joins the Merivale portfolio in what has been the fastest period of growth in the group’s history.”
Already juggling numerous overhauls and pending openings, the Group continues expanding its footprint in Paddington, is through stage one of three at northern beaches stalwart The Newport, and is soon to open its first inner west venue with the relaunch of the Queen Victoria Hotel in Enmore. The Tennyson will be its first in Sydney’s south.
Describing Hemmes as “quite clearly on another level”, vendor John Feros also praised the decision to go to auction in the current climate.
“We had absolute faith in Andrew’s guidance regarding the auction sale strategy, and I think everyone who attended yesterday would agree that the format was a huge success, irrespective what your level of participation was.”
Ray White were suitably pleased with both sales, stemming from a publicised strategic and deliberate choice to utilise the company’s history with auctions, and the Tennyson sale representing the highest figure achieved for an Australian pub by auction.
“Several factors contributed to the outstanding auction results yesterday, including the quality of hotel product, quality of bidders, deft skill of auctioneer Damien Cooley, and the market landscape, which remains imbalanced in terms of supply meeting demand for A-grade hotel assets,” noted Jolliffe.
Ray White is already discussing its next auction, scheduled for 30 March, 2017, stating “several notable hotels” will again go under the hammer.
