David Tomsic’s Black Rhino Group has gone again in South Australia, picking up the full-of-potential Portside Tavern in Port Pirie for $3.6 million.
The Portside Tavern is a large, two-storey stone structure with a mostly enclosed balcony facing two streets, on its large 1,216sqm corner lot.
Extensively upgraded a few years ago, downstairs it offers lounge room and bar, gaming room with 32 machines and its own bar, the ‘Craft & Gin’ bar, and a bistro operating under a Caffe Primo franchise. Upstairs there is a nightclub and manager’s residence. The hotel licence permits 2am trading.
It came to market mid-2019, billed as a prime gaming opportunity with consistent annual trade, providing potential ROI of more than 20 per cent.
Port Pirie is a growing town of over 14k people plus tourists around 200 kilometres north of Adelaide, with a history dating back to 1845.
Black Rhino exchanged on the freehold going concern today, signing with vendor Brad Perks, who has owned for 10 years, mostly running it under management.
Tomsic says he is drawn to the potential of the pub, central to one of South Australia’s most rapidly developing regional towns and only a few blocks from the Nyrstar Smelter, and its 1800 employees.
The town is benefiting from infrastructure and growth, including the $24 million Memorial Oval Precinct redevelopment, massive transformation of the Nyrstar site, and huge new abattoir for Pirie Meats.
The pub reportedly does an average $60k per week in food & bev, while the gaming operation, with permit for 40 machines, could benefit from capex.
“It’s a great freehold, in a cracking spot … for me it was a no-brainer,” says Tomsic.
Black Rhino is already well established in Victoria, with around 20 pubs and another two in the pipeline.
Last month David Tomsic and wife Deborah Mathieson-Tomsic made their foray into South Australia, grabbing the Newmarket Hotel.
He sees the market as still gun-shy post-COVID, and likes the opportunities coming up in the other southern state.
Black Rhino will spend some money at the Portside to give it every chance to shine in the burgeoning township.
“I like to go into these county towns and put on a grouse offer,” he adds. “That’s where I’ve dominated and done well.”
The group’s charge into SA shows no sign of slowing, with Tomsic hinting at further announcements in coming weeks.
