Peter Beaumont’s Fernwood Group has put its Balmain landmark up for grabs, offering “development potential” to the hungry investor market.
The 1885 Exchange Hotel is located on a 640 square metre corner block in the heart of uber-trendy Balmain. The freehold going concern will go to auction 20 August.
The Hotel has submitted plans to convert delivery space at the rear into a beer garden, but this could potentially instead become high-value residential and even assume some of the rear of the heritage-listed building.
The campaign is being steered by CBRE Hotels director Daniel Dragicevich in conjunction with CBRE Capital Markets director Nicholas Heaton. The agents expect strong investor interest.
“The Exchange Hotel is a Balmain institution held in high regard by those in the industry,” said Dragicevich.
“With its larger footprint than most of its competitors, there is the definite potential to build on the already impressive cash flows of the business.”
Dragicevich says every sphere of the commercial property market has seen “a surge of activity” but noted the particular importance in the pub industry of cross-sector investment sales, with astute purchasers looking for maximum return opportunities.
This was certainly the case with the $50 million sale of Baulkham Hills’ Bull & Bush Hotel through CBRE to booming housing developer Dyldam. Heaton says the Exchange’s development potential will similarly be a major drawcard.
“This Balmain institution will no doubt be hotly contested, with the asset’s underlying property value, future development potential and existing successful business operations making it a premier offering.”
Last September Peter Beaumont sold both the Mona Vale Hotel and Northies Hotel for $30 million to the partnership of Arthur Laundy and Fraser Short.