John Feros’ JDA Hotels has listed Top200 pub the Padstow Park Hotel, with new extended trading and price expectations in the high $20 millions.
After executing sale-and-leaseback of the Group’s Allawah Hotel last September, and record-breaking auction of the development-ready Tennyson to Merivale in late 2016, the large-format Padstow Park will also go to auction, in March.
The family bought the Padstow from Coles’ Spirit Hotels in 2014 for circa $14m, at the time ranked around #220 on the Liquor & Gaming list of NSW venues.
It has enjoyed ongoing refurbishment and is currently ranked #169, with only 20 EGMs, likely making it the best-performing pub for its level of gaming exposure.
Significantly, in December it garnered approval for extended trading, from midnight to 2am, with uplift yet to be realised.
“In the past 12 months we have spent considerably in terms of cap-ex so as to position the business in anticipation of the extending trading hours and clear development growth in the area,” explained Feros.
“We simply found that our patron numbers at 12-midnight were still very meaningful, and the ability to retain and grow this business by virtue of greater trading flexibility is historically a strong enabler for the profitability of hospitality businesses such as the Padstow Hotel.”
Padstow is one of Sydney’s south-west growth areas, and the Hotel sits on a 2,723sqm block close to Padstow station.
JDA is John Feros, with brother Dean and sister Alexandra, and operates as an unlisted trust typical of private equity, with investment timeframes.
This and market conditions are understood to be behind the choice of a public auction.
“Indisputably, the appetite for well-positioned hotels underpinned by reliable gaming revenues and situated on sizeable commercial property holdings remains unsatisfied,” states Andrew Jolliffe, Ray White Asia-Pacific director, agent for the sale.
Strong metro freehold going concerns in NSW are increasingly fetching returns as tight as eight per cent, which could see sale price well north of $25m.
The Padstow Park Hotel will go to auction at the offices of Ray White on Wednesday, 21 March – alongside the Grand View Hotel, which hit the market last week.
