The much-anticipated future of The Keystone Group portfolio remains undetermined, as news emerges of a shrinking short-list and Dixon Hospitality eyeing seven of the 17 venues.
After falling foul of financiers, a high-profile campaign for the well-known Keystone portfolio has been conducted through CBRE Hotels by receivers, Ferrier Hodgson (FH).
FH’s Morgan Kelly reports Dixon Group has made advances on selected assets from the Group, along with a number of unnamed parties, each vying for elements suited to their existing operations.
“Through the competitive bid process run by CBRE Hotels, it became clear that prospective buyers were most interested in specific venues that strategically aligned with their own businesses,” reported Kelly.
“As part of the remaining due diligence process, Dixon Group representatives will this week commence meetings with management of the venues. We are also in final stage negotiations with separate bidders for the sale of the remaining venues.”
Sources say the process still has some way to go, and negotiations are continuing on specific assets with competing parties.
Kelly says the break-up of the portfolio has proven to be the path for maximising sale proceeds, and the ongoing operations will fit within the needs of the suitors. Dixon Group is reportedly interested in Cargo Bar, Bungalow 8, The Rook, Winery, Manly Wine, Chophouse Sydney and Kingsleys Woolloomooloo.
“The businesses are all continuing to operate on a business-as-usual basis.”