The Gravanisbrothers have taken another big step into South Australia, securing Greg Maitland’s sprawling Paradise Hotel and potential in Adelaide.
The veteran hotelier’s GM Hotels group has held the Paradise since 2009, forming part of a portfolio that has historically included pubs across South Australia and Queensland.
In Paradise is a public bar with TAB, commercial kitchen and bistro, and gaming lounge with 33 EGMs, on a large 8,500sqm lot with parking for over 100 cars.
It includes 2,500sqm of unused, undeveloped land, on a separate title, with favourable ‘Urban Corridor’ zoning bringing strong potential for future development (STCA).
Formerly known as Independent Pub Group, these days the GM Hotels collection is contained to SA, still holding the Whitehorse Inn and Pier Glenelg.
Maitland elected to further consolidate and take advantage of the widespread investment interest in South Australian pubs, listing the Paradise in July.
Parts of the property, such as the bistro, had been recently refurbished, but the campaign noted further uplift potential in unrenovated areas and authority for 40 machines in the gaming operation.
“The Paradise Hotel represents a highly strategic divestment, which can now allow me to focus on further opportunities within the local market,” offers Maitland.
“We wish Oscars Group every success with the venue and celebrate what is clearly a dynamic and exciting period for the SA market.”
NSW-based Oscars has taken the freehold and business of the Paradise for around $22 million.
This continues the group’s foray into the state, following their acquisition of the Fahey Portfolio earlier this year.
An on-market campaign on the Paradise through JLL’s John Musca, Will Connolly and Ben Parkinson reportedly garnered interest from both local and national operators.
“In recent years, the SA pub market has witnessed an unprecedented surge of interstate capital, with volumes recently exceeding $500 million from cross-border activity alone,” says Connolly.
“Eastern seaboard hotel groups have identified South Australia as a market offering exceptional opportunities for assets of scale, underpinned by favourable regulatory environments and compelling value propositions compared to their home markets.”
