Michael Lucas and David Kennewell have secured their latest exit from the industry with sale of their Cooee Hotel in St Georges Basin for around $7.7 million.
Brisbane-based Lucas and long-term partner Kennewell acquired the freehold of the pub, just two streets from St Georges Basin, in early 2019. But the tenant moved out and the partners had to resume control.
It is the only hotel in a catchment of around 12,500 residents, but was in desperate need of some capex. The partners achieved major improvements courtesy of a strategic renovation and reconfiguration, finding a profitable revenue mix incorporating a strong KENO and gaming operation.
In early June the pair put the pub to market, looking for north of $7 million. The public campaign reportedly yielded five offers to purchase, and the successful bidder exchanged documents with the vendors within 24 hours of the closing date.
New owner of the Cooee is a consortium spearheaded by a Wollongong-based property developer. His outfit will operate the freehold going concern under management, and do not plan to make any immediate large-scale changes.
“We are absolutely delighted to become a part of the local community, and look forward to meeting the locals and working with the current staff,” offered the buyer.
The result continues a regular flow of NSW south coast hotel sales. Last July Damian Kelly bought up the popular North Nowra Tavern for around $12 million, and in February this year Ged Dore took on the Great Southern Hotel in Berry, before Justin Hemmes took his group south to first buy the Quarterdeck at Narooma then the nearby The Whale boutique hotel.
Lucas offers the new proprietors “every success” with the Hotel, and thanked HTL Property’s Sam Handy and Blake Edwards, who managed the campaign.
“The sale of this south coast freehold, particularly at this time, illustrates the confidence in the sector and the foresight of stakeholders to take advantage of opportunities in this fertile transaction landscape,” said Handy.
