Feros Group has announced the very large-format Terrey Hills Tavern is back on the market, as they look to focus on a swathe of opportunities in Sydney’s south.
Nick and Chris Feros’ group has listed the Northern Beaches landmark, as offerings in Sydney have all but dried up, and in the wake of Iris Group paying $65 million for Manly’s The Steyne in 2019, and $57 million for the nearby Ivanhoe Hotel in February this year.
The Feros Group is predominantly based in the Sutherland Shire, the stable counting The Prince at Kirrawee, Taren Point Hotel and Highfield’s at Caringbah.
Terrey Hills Tavern has long been considered something of a geographic outlier in the collection, situated inland from Narrabeen – more than 50 kilometres north of the Feros head office.
The asset was put to market in 2017 for the same reason, but withdrawn when the Rocksia was divested to Oscars soon after.
‘The Tav’ occupies a massive 15,870sqm lot on arterial Mona Vale Road, and reports annual turnover exceeding $10 million, through diverse revenue streams including a near-cult following of its voluminous foodservice operation. The pub is likely to see sale price in excess of $40 million.
The Group reports a lot of pivotal innovation during the pandemic, focusing on ensuring the businesses and staff could pick up where they left off, and Chris says while they wish COVID hadn’t happened, they will definitely be stronger as a result.
A year on from the shutdowns, the suburban-centric Feros hotels are thriving and the family is looking to the industry’s future. Chris hints at “a lot going on” with the Group, eyeing big expansion plans and a couple of greenfields, but all more in their wheelhouse, Sydney’s south.
“We’re very excited about our outlook, and right now that’s about selling Terrey Hills and focusing on The Shire,” he says.
Since the prior listing, the Tavern has seen some cosmetic capex, and going into COVID was enjoying double-digit growth. But largely creating their own opportunities and less affected by the shortage of hotel stock, the Feros’ are heading a different direction.
“There’s never been a better time to put it on the market,” says Chris.
Beyond any inherent upside, the Tavern will surely benefit from its proximity to the land release and master planned mixed-use development in Ingleside, adding 3,400 new homes, and the Mona Vale Road east upgrade between Terrey Hills and Mona Vale.
The 1.58-Ha site also has potential in development or site amalgamation, which may serve to pit land bankers and developers against hoteliers vying for the asset.
Feros engaged HTL Property’s Dan Dragicevich, Andrew Jolliffe and Sam Handy to manage the campaign, who note the national transaction landscape (as at the end of April 2021) just clicked over AUD$1.25bn in hotel sales.
“Terrey Hills Tavern ranks alongside other Northern Beaches favourites such as the Hotel Steyne and The Newport in terms of the scalable nature of the business and sheer size of the operations, which astute hoteliers will be drawn to,” suggests Dragicevich.
The freehold going concern of the Terrey Hills Tavern is being sold via Expressions of Interest, closing Thursday, 3 June.
