Marcus Levy’s Marvan Hotels has executed a reversal of fortune, with the sale and leaseback of its Leichhardt pub the Bald Faced Stag.
Marvan bought the pub a few years’ ago for circa $4.5 million, with a few potential outcomes in mind. Early 2017 the group sold the leasehold operation to Ulladulla Property Services P/L, with agreement to remove the 18 EGMs, which were sold off for just north of $2 million.
But just eight months into the new tenancy, Ulladulla was evicted amid claims of late rent and unpaid bills, including many of the live music acts engaged at the Hotel since their taking over.
Marvan Hotels confirmed it would reassume operations itself for the immediate future, and all band bookings would be honoured.
The lease deal had been negotiated through Metro Commercial, who later posed to Levy the question of also selling the freehold. He has now confirmed this has occurred – with the condition that the group remains as the tenant, also retaining the Hotel’s licence.
The property has sold to an undisclosed buyer for $7.98 million, boasting a strong operator and DA-approved roof signage generating ongoing income, equating to a good return for the passive investor and strategic play for Marvan.
The generous 1,300sqm site on Parramatta Road includes a carpark and the 1830-built Hotel, with ground floor bar and 11 accommodation rooms.
Levy declined to comment, but suggested the transaction seemed like an appropriate thing to do under the circumstances.
The freehold sale was managed by Metro Commercial Property Group’s Jerry Leis and Allan Levy (no relation to Marcus).