More than two years after the pandemic halted everything in pubs, Australian Venue Co has again entered an acquisition agreement to purchase the urbane Melbourne collection of Sand Hill Road.
In a rehash of the deal that almost transpired in March 2020, AVC will take over the lease operations at The Espy in St Kilda, Garden State Hotel in the Melbourne CBD, Prahran Hotel, Terminus Hotel in Abbotsford, and in Richmond the Richmond Club Hotel, The Posty, Bridge Hotel and Holliava.
Sand Hill Road (SHR) will retain its freehold of The Espy, and its under-construction Waterside Hotel.
The resumed acquisitions reflect AVC’s confidence in Melbourne hospitality – and a strong alignment in the ethos of the two groups, says AVC CEO Paul Waterson.
“We have enormous respect for these venues and the teams who have made them what they are.
“We’re excited to welcome the team and to continue operating the venues with the passion, expertise and excellence that the Sand Hill Road team has delivered to date.”
Waterson acknowledged the pedigree of the SHR operations and plans to take on many of its secrets.
“They’ve got quite structured training and development tools that have really added a lot of value to SHR, and you’ve got to take the best and apply it to the rest of your portfolio. I think they’re something that will add a lot of value to us.”
Since its beginnings in 2015, AVC has gone about acquiring landmark hospitality destinations in Melbourne, and Waterson says he is eager for them to benefit from what he describes as the “vision” of the SHR founders.
The two groups sat down and worked out a deal directly, which has come to include the bulk of the SHR team joining AVC, including recently appointed CEO Bianca Dawson, chief exec chef Mel Falson, and group sommelier Matt Skinner, embarking to take over what is probably the largest wine operation in the southern hemisphere.
Andy Mullins reports their departing family are “really excited” and optimistic about their options and the future of the venues.
Both entities see the deal as beneficial and embracing progress in the industry, as AVC bring technology and scale, while benefiting from the heart that founders Andy and Matt Mullins, Doug Maskiell and Thomas Birch have instilled in their group.
SHR’s last remaining asset, the freehold and operation of the Waterside Hotel, is set for its own journey.
Ditching existing plans for an overhaul of the three-level pub, during COVID they decided to go “all in” and demolish all but the façade, for a brand new seven-level extravaganza that will likely complement Justin Hemmes’ foray into the city at nearby Tomasetti House, bought early 2021.
The incipient Waterside may be the last SHR pub standing, but Mullins says it certainly won’t be their last.
“Today we are entrusting Australian Venue Co with venues that represent 22 years of work.
“We are so deeply grateful to every single staff member and every single supplier who has worked an hour, a week, a month or ten years with us along the way.
“AVC is an awesome company, led by awesome people. And we know that the introduction of our own people into their team will create amazing opportunities for all.”
Given their new landlord status and broader synergies, SHR will continue to work with AVC in the coming years, as it heads down a new road.
“We are currently planning our biggest project to date at the Waterside Hotel, but we’ll always treasure the love and laughter we’ve had along the way in our original venues.
“After two decades, we feel we’ve really only just got going.”
The SHR venues will continue to operate as usual following completion of the acquisition.
