Lane Cove stalwart Graham Campion has emerged as the big-ticket buyer of Lantern’s Commodore Hotel, picking up his coveted second pub for a cool $14.5m.
Listed pub group Lantern (ASX: LTN) put the McMahon’s Point beauty up for grabs last month. The 150-year-old Commodore was the last of the shrinking company’s ‘non-core’ hotels, and thus scheduled for divestment as per its turn-around strategy.
The sale notice coincided with the Board’s announcement of recommendation to next sell off the Group’s six remaining and ‘core’ assets, bringing about an effective end to operations and de-listing from the ASX. While this decision is yet to be voted on by shareholders, two assets of the remaining portfolio have just been listed in preparation.
“I’m happy coming in behind them,” Campion told PubTIC. “I think it will benefit from the TLC of an owner-operator, rather than under the supervision of a public company.
“We’ll see what’s lacking and where we can make a difference to the property and business, and think about what we’re going to do.”
Campion is the long-serving captain at Lane Cove’s Longueville Hotel, which his great uncle opened in 1929. The says the Commodore is the second pub he has been seeking for some time.
“From word go I thought it was in a good position, and a good fit for me. Somewhere I can make a difference. I bought it as a going concern to run and hold on to, not to try and make a quick profit.
“There are a lot of operators doing good things – reinventing the wheel, being more creative and inventive. Small bars bring something to the table … we take a bit of that. There’s the craft beer and liquor craze … people are happy to spend a bit more money on more expensive beers, whiskeys and gins.
“I think the pub industry is going well. There’s good balance. But this is my first acquisition outside our Lane Cove, so I’ll be on a bit of a learning curve.”
The sale price of $14.5 million represents an impressive 46.5 per cent premium to LTN’s 30 June 2016 book value, but in line with a recent independent valuation, according to Campion.
LTN’s sell-down has thus far achieved around $60 million in completed and contracted sales, with an average book value premium of 18.5 per cent. CEO John Osborne is suitably pleased.
“The sale of the Commodore is in line with our well-publicised strategy and we are delighted with the outcome.”
It was marketed by Ray White’s Asia-Pacific director Andrew Jolliffe and associate Blake Edwards, who were unable to disclose details but noted that [Campion] “was very deliberate” in the process that resulted in him winning out in the flood of offers for the high-profile asset.
“In the case of the unique Commodore Hotel, our client required us to deliver a wide reaching campaign, and the depth and quality of the 90-plus genuine enquiries received throughout the sale process is testament to both the compelling opportunity the 150-year-old hotel site afforded those who considered it, as well as the continued strength of national freehold hotel market with regard genuine A-grade properties.”
Jolliffe predicts a flurry of sales activity in the final months of 2016.
Campo. You are now truly Commodore Campion ……. great to see the Commodore back in the hands of an owner operator who will reinstate some soul back into the pub .
Looking forward to seeing what you do with it – congratulations campo