Receivers have listed the Empire Hotel in Annandale, out of the collapsing Public Hospitality portfolio of bankrupt banker turned publican Jon Adgemis.
Set on an 803sqm corner site with large frontages to both Parramatta Road and Johnston Street, the Empire was established in 1890.
Adgemis began amassing his collection around 2021, and that year he bought the pub from Oscars for $12 million. Public Hospitality group went on to count 22 venues.
After months of recent deliberation and rumours of rescue packages, Deutsche Bank took back control of another clutch of the Public pack in October, including the Empire, and appointed receivers and managers Jonathan Henry, Damien Pasfield and Kathy Sozou of McGrath Nicol to oversee immediate strategic divestments.
The Empire’s ground floor allows for a large trading footprint, with public bar, gaming with 19 machines, and two food activations, being Dale’s Pizza and the new George Colombaris-installed Double Happy Chinese.
The upper floors have undergone extensive renovations, ushering in 21 well-appointed accommodation rooms, all with ensuites. These rooms are touted as some of the best pub accommodation rooms in Sydney and are already delivering consistent weekly revenue after only six months in operation.
Adjoining the hotel is another commercial building that previously generated $70k in annual rent but is currently vacant, while an Optus telecommunications tower on the roof of the pub continues to deliver $50k annually.
Across bar, food, gaming and accommodation departments the hotel reports around $3.5 million in annual revenues, and benefits from 3am extended trading approval Thursday through Saturday.
It is also expected to directly benefit from the new state government and Inner West Council agreement rezoning large swathes of land in Leichhardt and Camperdown for construction of 8k new dwellings.
Amid loan covenant and lender disputes, the Empire was briefly sent to market in early 2024, only to be withdrawn again as Adgemis juggled financiers, landing a $400 million refinancing deal with Deutsche in the hope of sustaining the company.
But the harsh realities of high interest rates and construction costs, and lacklustre trade supressed by the cost of living, brought the Public house of cards down and receivers are now working hard to recoup as much as they can from the debt-laden entity.
HTL Property’s Andrew Jolliffe, Sam Handy and Dan Dragicevich have been appointed to steer the Empire Hotel sale process, following their successful sales of former Public assets the Kurrajong Hotel in Erskineville, 3 Weeds Paddington, and Town Hall Hotel Balmain.
Sources suggest the Empire is likely to fetch north of $20 million. An Expressions of Interest campaign on the freehold going concern will close Monday, 8 December.
“Investor appetite for Sydney CBD and city fringe hospitality assets has been pronounced these last twelve months, highlighting a real supply versus demand imbalance,” notes Jolliffe.
