The Good Beer Company has put to market its thumping Duke of Gloucester – The DOG, in Randwick – to focus on its city projects undergoing redevelopment.
John Azar’s Good Beer Company (GBC) developed a reputation for classy establishments built around great beer, notably Surry Hills’ former KB Hotel, the Keg & Brew, then sister venue the Dove & Olive.
In 2015, GBC took on Randwick stalwart The DOG for around $17 million, operating it on behalf of a private syndicate. The Dove was divested in aid of the multi-million-dollar renovation immediately executed, which included reconfiguration of the large-format suburban, the obligatory introduction of dozens of crafty beers, and launch of Duke’s Bistro eatery on the upper level.
Last July GBC delighted the people of Paddington with purchase of the beloved Four in Hand, after locals had rallied to see the iconic hotel sell to new owners wanting to keep it as a pub.
The syndicate now has plans for a major overhaul of their other city pub, and see divesting The DOG as a good solution.
“We’ve had several unsolicited approaches to buy The DOG in recent times and decided to put it to market to focus on our redevelopment of the Keg & Brew in Surry Hills,” responded Azar.
The big two-storey DOG occupies 750sqm on the prominent corner of Frenchmans’ and Clovelly Roads, offering three bars, two kitchens, TAB, gaming room with 19 EGMs, and spacious new beer garden courtesy of the renovation.
GBC has listed it with HTL Property’s Sam Handy and Daniel Dragicevich, who note its unrealised potential in gaming, with a room largely untouched and several Top200 pubs in the precinct, Price expectation is in the high 20s.
“An incoming purchaser would be strongly advised to immediately increase the hotel’s machine holding from 19 to the allowable 30, and doubling the size of the gaming room by extending into the existing TAB and smoking area,” says Handy.
GBC has reportedly built significantly on trade, now turning over more than $8 million annually, as eastern suburbs real estate continues to command a lifestyle premium, as seen in Hemmes’ $30 million purchase of Bondi’s fabled Royal Hotel.
“Whilst the business upside levers are obvious, it is expected that the underlying land and building value will excite a large segment of the market seeking prime property indexed to a stable and secure cash flow business,” adds Handy.
HTL reports 27 pub transactions in NSW since its inception eight months ago, with an upcoming pipeline indicating another above-average first quarter for the year.
The freehold going concern of the Duke of Gloucester is being sold via Private Treaty.