NATIVE ROSE OFF TO AUCTION

In On the Market by Clyde Mooney

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The freehold interest of Rozelle’s Native Rose – formerly the Ruby L’otel – is for sale, with a craft beer tenant on a long lease.

Investor Michael Huang bought the property in 2015, and largely operated it himself, until executing a major renovation on the bar, bistro, gaming room, beer garden and eight upstairs accommodation rooms.

Wanting to shift his attention, late 2017 Huang sold a new lease on the pub to Rocks Brewing, for a craft beer-focused venue ranging a good selection of the inner-city brewer’s wares.

The business is on a lease until 2027, with two five-year options, paying $240k (+GST) annual rent, plus outgoings, and the lessor retains the six gaming machine entitlements.

The 537sqm block holds some development potential, zoned B2 local centre, located at 68 Victoria Road, just four kilometres from the city.

Capitalising on a market starved of opportunities, Huang has retained Ray White Hotels’ Blake Edwards to market the asset.

“As interest rates remain at all-time lows, we are expecting a strong response from investors looking to secure an entry-level freehold pub in the Sydney Metropolitan area,” suggests Edwards.

“The hotel is leased to veteran hotel operator and craft brewer Mark Fethers who was founder of the Rocks Brewery in Alexandria.”

The immediate area has seen a number of strong sales, such as the Duck Inn and West Village, and land bank opportunities, as seen at Balmain’s Town Hall Hotel.

The freehold interest of the Native Rose will go to auction at the offices of Ray White (Level 17/135 King Street, Sydney) on Friday, 27 July.