After 39 years, the Liddy family is parting with the sprawling Engadine Tavern, set on 5,576sqm in an “under-pubbed” south-western Sydney precinct.
The Liddys purchased the pub in 1979, Engadine at the time a growing residential area following a large-scale release of Crown land in the late 60s.
Today the area enjoys a catchment of around 40,000 residents, with all major supermarkets occupying the town centre, but still just the one pub, which occupies three sites across five lots.
Significantly, it holds B3 Commercial Core zoning and 20-metre height limit with 2:1 FSR, giving it immediate potential for mixed-use residential development. A comparable, undeveloped block opposite the Hotel – the Gallery at Engadine, now with DA for 115 apartments – sold last year for $17.5m.
Family patriarch Kevin Liddy Snr passed away a couple of years ago, and while Kevin Jnr continues to operate the Engadine, the six siblings have determined market conditions are ideal to divest their shares.
“The Engadine Tavern ranks alongside the recently built Prince Hotel in nearby Kirrawee in terms of the scalable nature of the business and sheer size of the operation, which hoteliers will be undoubtedly drawn to,” offers CBRE Hotels’ Sam Handy, who is marketing the property with colleagues Daniel Dragicevich and Ben Wicks.
The Hotel features a 1am licence and 26 EGMs, generating diverse revenues of more than $7.4m annually.
Ranked a modest #475 on the Liquor & Gaming list of NSW venues, it offers just 10 of the machines in smoking solution, with no TITO or CRT and average age of the hardware noted as around nine years.
The obvious development potential in an area eager for affordable dwellings is likely to attract developers and land bankers atop ambitious hoteliers, and could see a price around $30m.
“There is a distinct lack of supply of recently developed apartments within Engadine, as evidenced by the strong response to the Gallery at Engadine apartments release,” notes Dragicevich.
The Engadine Hotel is for sale via a national Expressions of Interest campaign, closing Wednesday 28 March.
