Yet another of the State’s top gaming pubs has sold in another show of force for the pub and gaming industries.
John Feros’ JDA Hotels has grabbed Mascot’s Tennyson Hotel for around $27 million as the national pub market continues to sizzle.
Listed in OLGR’s most recent report as #94 gaming pub in NSW, the Tennyson sits on a 1400 m² corner block less than a kilometre from Sydney Airport, and already possesses an approved DA that opens the door to building further accommodation or serviced apartments.
JDA – which only recently sold Liverpool’s Macquarie Hotel – bought the Tennyson from long-term owners in an off-market transaction through Ray White Hotels.
Feros told The Australian he has plans to improve the food offering, and that JDA is targeting pubs with upside that includes property development potential; the same market driver that has seen prices such as the $50 million sale of the Bull & Bush to developer Dyldam.
Beyond its appeal to locals – both residents and the surrounding industrial and commercial businesses – Ray White’s Joel Fisher says its location offers plenty of opportunity.
“Botany LGA has an annual population growth rate of almost two and a half times the national average,” said Fisher.
“The large land holding already attracts revenue from a number of traditional sources, but there is also the approved DA for the new owners to enact, which will bring to the investment a whole new revenue centre in the form of executive-style accommodation.”
The hard-fought sale is another example of market appetite – most importantly due to the sheer number and range of interested parties, says Ray White Asia-Pacific director, Andrew Jolliffe.
“Market depth is the receptor we look at, as opposed to individual sale prices, and it’s the market depth that is telling us that we’re in a robust part of the investment cycle,” commented Jolliffe.
