The O’Donnell family flags the end of its portfolio sell-down with the listing of its south coast landmark operation the North Nowra Hotel.
The large-format pub is set on an underutilised block of 6,019sqm next to the North Nowra Shopping Centre, on the corner of Page Avenue and Illaroo Road – the main drag through town, off the A1.
It enjoys an exclusive catchment of 6,000 local residents, and diverse trade coming through the well-patronised public bar, wagering and gaming room with 25 EGMs, under a 1:30am licence, as well as a strong takeaway bottleshop operation. Annual revenue is reported at around $7.5 million.
The late Gary O’Donnell bought the pub in 2017 with a business partner, Sydney-based publican Mark Duggan. Following Gary’s passing around 18 months’ ago the O’Donnell family has been divesting his estate hotel interests.
North Nowra Tavern (NNT) is the last to be put up, following sale of the Empire Hotel at Goulburn last October, the Southern Railway Hotel at Goulburn in November, and Australian Hotel Cowra earlier this month.
The NNT also holds an approved DA to significantly increase the size of the trading footprint and optimise the layout of the hotel. Its zoning allows for significant redevelopment potential, permissible uses including retail, medical centres and motel accommodation.
The region has also been benefitting from the State and Federal Government’s $2.4 billion upgrade of the Princes Highway between Nowra and the Victorian border, which follows completion of the $631 million Albion Park Rail bypass and $450 million Berry to Bomaderry upgrade. The infrastructure has reduced congestion and improved accessibility to the south coast region.
Duggan and the O’Donnells have commissioned HTL Property to market the asset, directors Dan Dragicevich, Andrew Jolliffe and Sam Handy noting the competitive interest amongst buyers around key coastal freeholds.
“The reality, however, is that very few opportunities present the scale and future-proofed revenue generation levers that the North Nowra Tavern does, and it is for this reason HTL’s buyer universe has reacted so positively towards the opportunity,” notes Dragicevich.
This follows recent sales through HTL indicative of market hunger, such as Warren Livingstone’s purchase of Botany’s Captain Cook Hotel, and HPI’s investment in the freehold of the Malouf’s Gregory Hills Hotel.
“Hard yielding, high barrier to entry property-driven assets are attractive to investors and transcend asset class appetite,” added Jolliffe.
The freehold going concern of the North Nowra Tavern is being sold via Expressions of Interest, closing Wednesday 15 April.
