James Wynne’s investment vehicle Shogroup has partnered with John Upham to take their first pub in Adelaide with purchase of the new Eight Dragons in redeveloped Chinatown.
Shogroup and Upham have secured a 37-year lease on the new Hotel, which is the only hotel in the precinct, and located in a prime spot beside the $400 million redevelopment of the Central Market and Chinatown.
The major project site is destined to become a new social and commercial heart of the city, open 18 hours every day, boasting a new residential tower, 11k sqm of retail, 22k sqm of office space, an anchor supermarket and the hotel.
John Upham is a giant of the Victorian industry, having owned more than 60 pubs over the last five decades. In 2021 he sold his long-held Lorne Hotel to Merivale for a reported $38 million.
Eight Dragons adds to the Upham portfolio, which is comprised of both freeholds and leaseholds.
South Australia has seen increased interest from interstate parties since the revision of its gaming laws.
Duxton Pub Group, headed by major local players Ed Peter, Martin Palmer and Brett Matthews, has been on a buying spree in recent years, securing the Cremorne Hotel, Old Noarlunga Hotel and the Woolshed Inn in early 2021, the Port Broughton Hotel later the same year, craft brewer Little Bang Brewing Co mid-2022, and the Swanport Hotel in Murray Bridge and The Australasian in Goolwa in 2023.
Similarly, Dave Tomsic’s Black Rhino Group has found its way into a growing collection in the state, picking up all three pubs in the Copper Coast town of Moonta in March 2022, followed by the Kadina Hotel in April, and then two pubs in Coober Pedy the same month, and later the Cardinia Park Hotel at Beaconsfield for more than $25 million.
Shogroup’s activity follows the mid-2023 sale by Wynne, based in Sydney, of the Dunkirk Hotel at Pyrmont.
He says the new acquisition represents a milestone in Shogroup’s strategy, which is seeking investments in NSW and South Australia, partnering with experienced operators.
“We are actively on the lookout for opportunities where we can add value as a strategic partner and investor to hotel acquisitions.
“Our investment in Eight Dragons is exemplary of the type of impact we want to have. I believe this redevelopment will be a catalytic investment for Adelaide’s CBD, in particular for Chinatown and the surrounding market district.”
The pub is slated to immediately begin a multi-million-dollar fit-out by famed designer Tony Donnelly, aiming to create an entertainment, sports viewing and gaming centrepiece for the CBD, offering a new public bar, kitchen and food concept, and 175sqm state-of-the-art gaming room, with 36 machines.
Eight Dragons is expected to open for business in June.
“We see the market, and this asset class in particular, brimming with opportunity right now,” adds Wynne.
