The sale of a top-50 gaming pub has kick-started what is expected to be another big year in Australian pub real estate.
The freehold of the Lidcombe Hotel was purchased by Marcus Levy’s Marvan Hotels eight years ago from Hedley Leisure & Gaming. A few years later, Marvan went on to buy the leasehold too, from tenant NLG (National Leisure & Gaming).
Marvan has undertaken significant renovation and reinvention of the classic corner pub opposite Lidcombe train station, positioning it to focus on the area’s strong bar and gaming trade.
The western Sydney suburb has just three pubs – all in the top 50 of Liquor & Gaming’s list of NSW venues. The Lidcombe is currently ranked #41.
It has been divested by Marvan to an unnamed buyer for close to $36 million – on par with Justin Hemmes purchase of the Tennyson Hotel in December.
Similarly, the Lidcombe Hotel offers huge development potential in the bustling precinct, its 782 m² site enjoying B4 mixed-use zoning with 5:1 FSR and 36-metre height approval. Lidcombe is a hub in the public transport corridor slated for large expansion to service growth between the CBD and the proposed Western Sydney Airport.
The Hotel itself boasts a 24-hour licence and rare three-hour gaming shutdown period.
The sale was managed off-market by CBRE Hotels’ Daniel Dragicevich and Sam Handy, who are eager to continue the pace that closed out 2016.
“The Lidcombe Hotel is a true A-grade hotel asset, and the price achieved is testament to the scarcity of hotels of this quality,” commented Dragicevich.
“We are optimistic that the strong current market will continue into 2017 with stable investment fundamentals, limited supply and attractive yield spreads underpinning continued interest in the sector.”
