Dormant for nearly seven years, the magnificent Palisade Hotel has sold to a private investor after a packed auction and vigorous negotiation.
Located overlooking the Harbour Bridge and foreshore and $6 billion Barangaroo development, the Hotel has been closed since 2008 but recently enjoyed a massive refurbishment to capitalise on underlying property value.
The “Jewel of Millers Point” boasts a street level bar, three floors of luxury accommodation, then two more levels with fully glassed indoor and outdoor dining areas, balconies and amenities.
Agents Manenti Quinlan report overwhelming interest in the landmark site, executing nearly two-hundreds IMs and over 100 inspections. Director Gerry Quinlan told PubTIC in early March enquiries were being fielded from hoteliers around the country, as well as developers and businesses seeking a “trophy” asset.
“In 33 years of business, we’ve never had an enquiry rate like we have seen with this,” said Quinlan.
The property went to auction on 25 March, with a number of serious players informed of the $22 million reserve price.
While the auction room in Margaret Street saw over 100 interested parties cram inside, the highest bidder stopped short of the reserve at $15.1 million.
PubTIC understands negotiations continued in the following weeks, and sources say that an agreement has now been reached for around $20 million.
No plans have yet been announced for the historic Federation Free Style building, built in 1912 by the Sydney Harbour Trust, but it is hoped the final use will be a combination of prestige residential, retail and a licensed hotel on the ground floor.
Manenti Quinlan refused to comment on the deal, citing confidentiality, but offered that sales of premium assets in inner-city locations are increasingly hard to find.