The historic Edinburgh Castle will find a home in Good Beer, sold with vacant possession as Solotel winds up its operation of the Sydney CBD landmark.
Established in 1885, on the corner of Pitt and Bathurst Streets, ‘the Eddie’ was famously home for a time to iconic Australian writer and poet Henry Lawson, who inhabited an upstairs room and was said to drink ‘voluminously’, in the lead-up to what became a storied career.
Bruce Solomon’s Solotel relaunched the iconic pub in 2016, capitalising on its unique history.
The group retains an impressive list of Sydney venues, such as The Clock in Surrey Hills and Golden Sheaf Hotel in Double Bay. Recently its f&b operations at the Opera House came up for tender, and in January its lease will wind up at the Edinburgh Castle.
The hotel’s private freehold owner opted to test the market, marking its first time for sale in more than 20 years, and presenting opportunity to secure a re-stapled freehold going concern in the tightly-held CBD, being the first time in decades for the Castle.
An off-market campaign reportedly generated over 85 enquiries, attracting hoteliers, investors, family trusts and investment funds.
Literally surrounded by large-scale development, including the Sydney CBD’s first Build to Rent project and the recently opened South Pitt Street Metro Station, trading prospects were a key motivator.
Following the Solotel covenant as the new ‘King of the Castle’ is John Azar’s Good Beer Company. The undisclosed sale price, reported at circa $30 million, is said to reflect a 3.2 per cent cap rate on the passing income.
The campaign was managed by JLL Hotel’s Ben McDonald, Kate MacDonald and capital markets senior director James Aroney, who suggest the buyer pool on the asset was deep.
“Pubs continue to feature prominently as part of the ‘alternative’ real estate asset class and this result highlights the ongoing appetite and appeal of the sector to a growing audience,” says McDonald.
Solotel and John Azar did not provide comment.
