The Riversdale operated APF has completed its freehold “disposal strategy” in Brisbane, selling the voluminous The Elephant for over $20 million to Sydneysiders Simon Tilley and Nick Wills.
Singleton, Dixon and Carnegie’s Australian Pub Fund (APF) has been strategically selling down its accumulated portfolio since opting out of taking the $250-300 million vehicle to an IPO. While the bulk of the Sydney assets were sold off in 2016 and 2017, APF’s Queensland properties proved more complex.
Built 1888 as the Prince Consort Hotel, The Elephant was listed on the Queensland Heritage Register in 1992. The four-storey structure boasts four separate bars, a large outdoor beer garden and a gaming room with 42 machines. APF purchased the pub late 2013 for around $27 million, making it one of the State’s largest ever sales.
In October it was listed through JLL’s Nick Butler in Sydney and colleague Tom Gleeson in Brisbane, in conjunction with CBRE Queensland’s Paul Fraser and Jack Morrison.
The acquisitive Tilley-Wills combo has been looking to expand beyond their existing five venues in Sydney, counting the Greenwood in North Sydney, Clovelly Hotel, Veranda Bar in the CBD, Buena in Mosman, and Oxford Art Factory in Darlinghurst.
Drawn like an increasing number of southerners to a rare opportunity in the Sunshine State, a deal was struck for the Sydney-siders to take The Elephant’s reins.
The campaign reportedly generated over 60 enquiries and eight offers from around the country, highlighting the ‘seller’s market’ taking place in the region, where the majority of hotel assets are held by families and corporate entities with no plans for divestment.
“Demand strongly outstrips supply in Queensland’s South East corridor,” poses Fraser.
Having completed its sell-down, the second-round APF still holds a leasehold interest in its formerly owned Stock Exchange Hotel, as well as managing three other venues in the State.
Last year it completed its Sydney sell-down with transaction on Balmain’s iconic Unity Hall, but already the second iteration had moved out of the capital, buying Newcastle’s Lambton Park in mid-2018.
Speaking with PubTIC, Simon Tilley sees real potential with the kind of high-end offering he and Wills have executed to the south, citing the level of investment in surrounding Fortitude Valley.
“As sophisticated Sydney-domiciled investors representing the new money infiltrating our industry, me and Willsy could not forego the patent appeal of this institutional asset. We’ve abnegated restricting ourselves to NSW and joined the quest for the ameliorated returns of Queensland.
“Also, being historic supporters, we like the idea of having our own safe place to hang out during the northern editions of State of Origin.”
