Australian pub institution The Oaks has been sold by the Thomas family to loyal locals for more than $120 million.
Set on a 2,188sqm corner of bustling Military Road in Neutral Bay, there has been a pub on the site since 1885. The current building was built by Tooth & Co in 1938. The Thomas’ extensively renovated it in 2019, bringing Taffy’s Sports Bar and Alala’s Cocktail Bar.
The large-format pub offers a prized dining service, gaming room with 30 machines, assorted function spaces on the upper level, bottleshop, and its famous beer garden, wrapped around an 80-year-old oak tree.
After nearly 50 years’ curation the family listed their pride and joy last August. Sale of the freehold going concern represented its first time ever to market, and drew headlines around the country touting an anticipated sale price of more than $175 million, which would make it the largest pub-style hotel sale ever in Australia.
Beyond the thriving business and its international recognition, marketing literature also noted development potential via mixed-use zoning and planning guidelines allowing a structure of up to five storeys.
The Expressions of interest campaign was managed by JLL Hotels’ John Musca and Ben McDonald, closing September.
It has now been confirmed the iconic The Oaks has sold to a local family said to be “long-time patrons” of the establishment.
Professional sources close to the deal say the buyer is Doug Mitchell, for a price believed to be $126 million, which while roughly 30 per cent below the highly publicised asking price is the second-highest price ever paid for a pub in Australia, behind Nelson Meers’ purchase of the Crossroads Hotel last April.
Mitchell began a career as a producer in the 1980s, with Sydney’s Kennedy Miller production house. The team has garnered numerous awards for their work on The Year My Voice Broke (Academy Awards Best Film, 1987), Flirting (AA Best Film, 1990), Babe (Golden Globe, 1995), Happy Feet (AA Best Animated Feature, 2006), and Mad Max: Fury Road (AA Best Picture, 2015).
Pub and family patriarch David ‘Taffy’ Thomas entered a leasehold on The Oaks for $250k in 1975, with support from his mother, Alala. In 1990 he went on to buy the freehold for $12 million.
The family has worked tirelessly on the high-profile venue for decades, and has famously never (ever!) had a drink in their own pub.
Said to be very happy with the deal, after half a century they hand over the keys early March.
“We’ll leave The Oaks with fond memories and many friends,” said family representative Andrew Thomas.
The Thomas’ still own and operate the Winston Hills and The Entrance hotels.
The Oaks continues the trajectory of 2023, coming after a record year in pub transactions in Australia in 2022, logging $2.2 billion of assets changing hands as new capital dove into the sector in pursuit of safe harbour from last year’s high inflation figures and the looming spectre of a recession.
Love The Oaks and sitting in the garden with friends having a wine or meal. It’s an iconic part of our personal histories. Best wishes to the new owners and many thanks to the Thomas family for their contribution to preserving and improving such a wonderful institution.