Legend of Sydney’s north shore, The Oaks in Neutral Bay, has been sold by the veteran Thomas family for around $140 million to the family of Patrick and Angela Gallagher.
The Thomas family moved into operations at The Oaks in 1975, when patriarch David ‘Taffy’ Thomas partnered with his mother Alala and purchased the lease from Tooth & Co, later acquiring the freehold.
Across 50 years of stewardship the family has groomed the large-format pub, on a 2,188sqm site, into a world-famous establishment, and drinking hole of choice for celebrity identities and sports stars.
Offering variety through Taffy’s Sports Bar, Alala’s Cocktail Bar, Bar & Grill Restaurant, extensive first floor function spaces, gaming room and high-end bottleshop, the pub is best known for its picturesque beer garden, centred by an 80-year-old English Oak tree.
Sensing the time was approaching to pass the baton, the family listed the hotel mid-2022 with hope of a sale price of $175 million. After much speculation on an outcome, and possible sale to movie producer Doug Mitchell, a deal did not finalise.
Instead, Gallagher says it is another budding family taking the reins of the institution as three of his four children, Jack, Sophia and Austin, join him and Angela on the job.
“It’s been a family operation for a long time and our family taking over complements how we’re going to run it, which is very family-friendly.
“I couldn’t do it without my hard-working wife, who is brilliant at her job, and my sons and daughter.”
Ending a half-century on duty, Andrew Thomas says he is happy with the timing and result.
“It’s the right time for the family to move on and the Gallagher family are the right custodians to pass the baton to.
“The Oaks is one of a kind and has been an enormous part of our family history. We’ll leave with fond memories and many friends.
“It holds a very special place in the Australian hotel landscape and in the hearts of the community.”
The sale, the second-highest price paid for a pub in Australia, equalling sale last year of the Beach Hotel in Byron Bay, and behind only the $160 million sale of The Crossroads Hotel in 2022, was through JLL Hotels’ John Musca and Ben McDonald, who note the breadth of capital accumulating in the pub sector as it continues year-on-year growth and out-performs most entities in retail and services.
“As in all real estate sectors, the premier assets are infrequently traded and in a rapidly consolidating pub market, The Oaks stood out as the most coveted traditional hotel in the country – it’s what every hotel should be,” suggested Musca.
Taking the keys 28 April, Gallagher acknowledges the polish of the pub’s operations and the Thomas legacy, and holding a similar hands-on reputation – with third-generation Gallaghers now in the mix – he expects a smooth and gentle transition.
“Our style will come through eventually, with small, subtle changes. The customer experience won’t really be any different, and hopefully will be well received.”
The sale campaign spoke of favourable planning guidelines allowing for up to five storeys of development atop the heritage pub, but Gallagher says they have no plans in pursuing that.
Gallagher Hotel Management (GHM) venues include some major acquisitions in recent years, such as the Longueville Hotel in Lane Cove in 2022 for around $50 million, and last year both Sydney CBD icon Jacksons on George for around $20 million and the Railway Hotel in Fairfield for around $48 million, while they sold the Terrigal Hotel for around $47 million.
GHM opt for big f&b pubs, such as their thriving Hunters Hill Hotel, and Gallagher says he will focus on enhancing the pub character in his most ambitious project to date.
“It is without a doubt the pinnacle of my career,” he says. “I never dreamed I’d be doing a deal of this significance or for that amount of money.
“It’s an exciting opportunity, in planning for a long time.”
