Australian Venue Company has furthered its strategic expansion with the nine-digit acquisition of eight venues held by Melbourne trailblazers Sand Hill Road.
Amid speculation, The Australian published a story in January suggesting KKR (Kohlberg Kravis Roberts), majority stakeholder of Australian Venue Company (AVC), was looking to purchase Sand Hill Road (SHR) businesses including acclaimed St Kilda venue The Espy for around $75 million.
After lengthy negotiations, the two parties signed yesterday on a deal for all but one of SHR’s Melbourne pubs, for a price understood to be north of $100 million.
The eight acquisitions are all leases, as per AVC’s model, with SHR retaining its freehold of The Espy, and all of its Waterside Hotel in Flinders Street, which is currently being renovated and due to reopen later this year.
The venues headed under the AVC banner are: The Espy, Garden State, Richmond Club, The Posty, Prahran Hotel, Holliava, Bridge Hotel, and Terminus Hotel.
AVC reports it will continue to work with the venues’ creators to sustain the reputations SHR have built.
“We have long admired the work of Sand Hill Road and everything that they have achieved in re-imagining and restoring rundown pubs,” says AVC CEO Paul Waterson.
“It is a privilege to be entrusted with ownership of these beloved Melbourne establishments and to add such an innovative and driven approach to our group.
“Like us, the Sand Hill Road team have worked closely with local communities as they have operated and refurbished these iconic Melbourne establishments. We look forward to taking on responsibility for maintaining these core values and enhancing their legacy.”
Andy and Matt Mullins and their business partners Doug Maskiell and Thomas Birch began revitalising pubs two decades ago, and confirmed to PubTIC they are certainly not out of the game.
“We think there’s so much more opportunity … Melbourne is only half-done,” says Andy.
AVC has rapidly built a portfolio of more than 150 venues across five states plus the Northern Territory, which includes its QVC partnership with Coles and acquisition of the Spirit Hotels portfolio last March. The company has long been thought to be building toward an IPO of the leasehold-model business, which could take place as soon as this year.
Having started around six years’ ago with just one Melbourne pub, the SHR collection will significantly strengthen AVC’s base in the Victorian capital, and intrinsically links the two entities.
“AVC have a strong track record of operating pubs across the country that maintain their integrity and character, whilst bringing added value through industry relationships, marketing expertise and a strong team to drive growth whilst staying true to core values,” Andy Mullins furthered in the statement released today.
“We specifically want to thank each and every staff member who’s worked with us over the past twenty years. And finally, but most importantly, we want to thank each and every customer who’s shared a beer and a laugh across our bars.”
