Industry heavyweight Peter De Angelis has swooped on the Raby Tavern and shopping centre, beating stiff competition to take the prize early for $35 million.
Raby Tavern is a single-storey premise forming part of a small retail shopping centre on around 8,000 sqm. It is the only pub in the precinct, recording 20,000 residents and counting.
After 16 years owning the property, run that entire time by a licensee GM now retired, in October the Walker family determined to put the property to market, with sale price expectation north of $30 million.
The Tavern is a consistent Top200 performer, with 28 machines, although only 15 are in smoking solution and the gaming offering would benefit from a refresh.
But the De Angelis group has been increasingly seeking assets with further opportunity to augment Hotel operations, and this kind of “precinct-enhancer” is an ideal fit for the model.
“It’s perfect for them; they won’t buy a straight gaming pub,” offered HTL Property’s Dan Dragicevich, who marketed the property with colleague Andrew Jolliffe.
“Hotels located adjacent shopping centres are always keenly sought after by astute investors who recognise the natural trading advantages enjoyed by their positioning.
“The ownership of this retail space at Raby enables the purchaser additional levers for expansion of the licensed footprint, and makes available the potential for a larger mixed-use development project in the future.”
De Angelis confirms the group is “extremely excited” to land the deal, moving quickly to secure what he sees as an outstanding opportunity.
“Expressions of interest are dangerous when there are big fish in the pond,” he says.
The group already has a strong presence in the region, including Uncle Bucks at Mt Druitt, purchased from Lantern Group late 2016, where they are currently awaiting a DA to construct three levels of office space and recalibrated retail next to the pub.
Raby is in Sydney’s south-west, around 50 kilometres from the CBD amongst growth regions such as Campbelltown and Narellan. The nearby Silverdale land release is the kind of residential development benefitting businesses, as seen in the increased trade and gaming rankings at ALH’s Lockies Hotel at Leppington. Recent big sales in the south have included Hemmes’ $34 million purchase of the Allawah Hotel and Wiggins and Cassar’s $47 million buy of Redcape’s St George Hotel.
De Angelis has plans at Raby proportionate to the regional opportunity, suggesting only minor enhancement of the gaming and venue in general, ahead of a full demolition and master-planned project.
“We know the area and it suits our model, which is not just a pub offering.
“We’re definitely going to redevelop the whole site, with an updated shopping centre offering and underground parking.
“We like to diversify … putting your eggs in one basket is a little risky, so we’re really pursuing venues like this that have a diverse offering.”
