Ged Dore has partnered again with private equity fund Black Fox Property, securing the Australian Hotel in idyllic Ballina, outside Byron Bay.
The classic two-story ‘Aussie’ occupies a large 1,787sqm corner site, offering a main public bar, bistro, gaming room with 12 EGMs, a large beer garden, and 20 pub-style accommodation rooms, under a 3am liquor licence.
It was extensively rebuilt by owner Patrick Henderson after a fire nearly destroyed it in 2016.
Black Fox (BFP) is fronted by Greg Bachmayer and Marc Schwartz, director at Clime Capital (ASX:CAM), and paid $9.5 million in a deal through JLL Hotels for the freehold going concern, under agreement of management by Dore’s outfit.
This is the second such arrangement, following the $6 million acquisition of Berry’s Great Southern Hotel in early 2021.
Dore says he was prompted to look at the Australian after seeing Colin (Peter) Parras buy Shaws Bay Hotel and Fenwick House in Ballina for $30.5 million, last November.
“I’m chasing the dream,” says Dore. “I’ve always loved the region.”
Ballina is a thriving coastal city of nearly 45k people in the NSW Northern Rivers region, proximate to Byron Bay and Lennox Head, less than 90 kilometres from the Queensland border.
Dore’s stable now counts three Sydney pubs, Berry and most recently Ballina. He has hired local managers at the latter two, and follows a schedule of regular visitation to each, while others better suited to the number-crunching look after the financials.
He says he can reach either pub in only two hours – one by car, the other via Ballina Byron Gateway Airport, which is only 10 minutes from the new Hotel.
“I can’t do pubs if I can’t touch them, so I do a roster cycle,” he explains.
“I love the challenge of rebuilding them. The first three years are the most exciting, and now it’s all about the redesign, the rebrand – the fun stuff that I like.”
BFP now counts two regional pubs amongst its considerable portfolio of commercial property, and Schwartz suggests the sector has solid appeal over other asset classes where yields had been squeezed, having proven resilient during the pandemic and with strong potential, given their historic appeal even in economic downturns.
The investment management director told the AFR pubs enjoy “numerous ways to add value” through both improved operations and diversified revenue streams.
Dore notes the pub is in need of some capex. BFP is putting up funds for the first round of changes, set to bring a new Mexican menu to the coastal watering hole, and a second round pending its success.
Kicking off their second deal together, after clearing the hurdles and negotiating flood zones, Dore says he is very happy with the BFP working partnership.
“They’re really good people. They appreciate what I can bring to the party and they’ve brought some financial clout to things.”
