Paving the way for its contemporaneous and future expansion, Laundy Hotels has acquired the former Aristocrat building at Lane Cove, as the group’s new head office.
The family-run Laundy operation has been eyeing diversification opportunities in recent years, and had considered the landmark building. Discussing the “explosion” in support staff stemming from their takeover of the partnership with Sydney Collective, Lane Cove came into consideration.
A “gateway” site to the upmarket north shore suburb, the Laundy juggernaut has agreed to a price of $33 million, reflecting a yield of around six per cent in the fully tenanted building.
Vendor on the deal was private equity investor Property Bank Australia (PBA), which acquired 17 office buildings across Melbourne and Sydney post-GFC, but after recent divestments including 51 and 53 Berry Street in North Sydney, the sale at Lane Cove leaves PBA holding just one of the assets.
71 Longueville Road is in the heart of Lane Cove, featuring a modern, open plan office space seeing plenty of natural light, with convenient access to public transport and a variety of local amenities.
Looking to accommodate the growing team, Laundy Hotels will install around 40 people in office space across half of one floor of the three-level building, as one tenant exits. There are nearly 120 car spaces underground, and major road access in all directions, making it ideal for large group meetings.
The pub group hopes to move in in May, and has already partnered with ground floor tenants Anytime Fitness, with thoughts toward a possible bar-café for training at some point in the future.
“Laundy Hotel Group is very excited to take the reins of such a unique building on a gateway site to one of Sydney’s best suburbs,” offers group GM, Nick Tindall, who lives nearby.
“The location and amenity of our new Head Office will assist in our drive to attract the best and brightest candidates to our business operations.”
The Laundy-Short partnership incorporated six hospitality operations, and for the purposes of a smooth transition, reconciling accounts and systems, the Sydney Collective team are still in their own ‘silo’ of management. Tindall says they are working toward the cohesive whole.
“This is a step in the direction of getting it all consolidated in one operation.”
The roughly 30-year-old building reportedly needs a little capex, as would be expected, but also holds future potential to be completely redeveloped into what will likely be its best use – a mix of commercial and residential.
Arthur Laundy, famously entrenched in his beloved Twin Willows Hotel office, will largely remain at the western base, along with some key senior staff who live locally. He will take a new office in the new HQ, but it “remains to be seen” how often he gets there, and business meetings will reportedly continue at the Bass Hill institution.
Sale of the asset was brokered by Chris Hartigan of Hartigan Bolt, with Tyler Talbot of Knight Frank serving as co-agent.
