A landmark pub on the outskirts of the Sydney CBD will soon close as its residential value has overtaken that of it remaining a pub.
The Alexandria Hotel was built in the 1920s by Tooth and Co, but the location has been a hotel since the 1870s. The building is the last of its kind in the area linking Alexandria with its pre-war industrial heritage.
The Sydney Morning Herald reports it has been purchased by an arm of Centennial Property Group, which has already lodged plans to demolish the pub and construct an $8 million mixed-use development, with four storeys housing 28 apartments above commercial space on street level.
Centennial Property Group promotes itself as “your partner in high performance property investment” and touts strategies including taking advantage in instances of “asset mispricing due to absence of competitive tension or a perceived decline in market fundamental”.
The company has submitted in support of its DA that although the building has historical value, its style of architecture is relatively common and that extensive development in the area has undermined its heritage significance.
For 15 years the pub has been leased by former Swans forward Darren “Harry” McAsey, who has turned it into the unofficial home for Swans fans to watch their team’s away games. He has chosen to forgo poker machines and trends in food & bev offerings to maintain the football focus.
In an area rapidly becoming premium real estate the potential for modern city-living residential has triumphed over a drinking hole whose location and structure present some challenges in the uber-competitive city fringe hospitality market.
The sale was conducted through Colliers International, who declined to comment. No sale price has been revealed.
The development application remains on public exhibition until 14 July at the City of Sydney Council.