FINAL COUNTDOWN BEGINS AS WATERWORKS HOTEL LISTED

The Lantern pub flood continues as the listed entity puts its high-ranking Waterworks Hotel to market.

While the procession of sales into a market short of supply have seen immense interest by operators eager to optimise the assets, few have offered the potential of the Waterworks, in the heart of the robust Botany LGA.

The Waterworks, currently ranked #198 on the L&G list of gaming venues, holds 26 EGMs with potential for 30 and only six enjoying positions in the all-important ‘smoking solution’. The nearby Lakes, Newmarket and Tennyson Hotels, all in Mascot, rank #54, #70 and #87 (respectively).

The pub also boasts a rare 24-hour licence and optimal three-hour gaming shutdown, and approved DA for a new alfresco gaming room.

The 902 m² site also offers development potential for residential or short-term accommodation, zoned B2 (Local Centre) with 14-metre height approval and 2:1 FSR. The Hotel currently offers eight rooms, two with ensuites.

waterworks-hotel-dining-area_crp_lr_featureIt is being marketed by CBRE Hotels’ national director Daniel Dragicevich and NSW director Sam Handy, fresh from successes with LTN’s Uncle Bucks and Ambarvale Hotels, each achieving large premiums to book value. The Waterworks sale is another timed to make the most of the “bullish market” conditions.

“The pub is also situated in close proximity to the Sydney Airport and Port of Sydney and its 24-hour liquor licence is attractive to the many thousands of shift workers that clock in and out each day,” notes Dragicevich.

The ASX-listed Lantern (LTN) is resolved to selling off its entire portfolio, with the de-listing and dissolution of the company likely to follow. Sale of the Waterworks is expected to put in the region of another $17 million in the pockets of shareholders prior to the company’s wind-down.

The only remaining assets after the Waterworks are the General Gordon in Sydenham and Crown Hotel in Surry Hills, ranked #144 and #193 (respectively) – but neither possess the upside potential of the Botany landmark, located just two kilometres from the booming Sydney Airport.

“We anticipate that there are publicans out there keen to acquire the hotel and take over the tills in early January next year as opposed to waiting for another acquisition opportunity,” suggested Handy.

“Unequivocally, there won’t be another TOP 200 gaming pub with these core trading attributes and this amount of upside coming to the market in the foreseeable future.”

The Sydney Waterworks was established in Botany in 1858, making use of the ‘Mill Stream’ inlet north of Botany Bay.

The Waterworks Hotel will be sold via an Expressions of Interest campaign, closing 13 December, 2016 – unless sold prior, as occurred with both Uncle Bucks and the Five Dock Hotel.

waterworks-hotel-frontage_cbre_crp_feature

Scroll to Top