The palatial Palisade Hotel – described as the “Jewel of Millers Point” – is back on the market.
The iconic Palisade Hotel in Millers Point went to market in March, 2015, following a top-dollar renovation to revive it after being dormant and closed for nearly seven years.
Its location boasts unrivalled views from near Observatory Hill of Sydney’s skyline and western harbour, and proximity to the super-development going on in Darling Harbour and the multi-billion dollar Barangaroo complex.
It sold to British entrepreneur Richard Sapsford for around $20 million, following a frenetic campaign and enquiries veteran industry agent Gerry Quinlan described as “like we have never seen” in his 33 years of business.
The trophy asset then underwent another major $5 million renovation and restoration, sculpting it to the business plans of its British owner. This eventuated in the spectacular Henry Deane rooftop bar and restaurant, eight luxurious hotel rooms, functions spaces, and the Public House Bar on street level.
It finally reopened for business in October 2015, a year after its previous renovation and almost eight years after it last traded.
For personal reasons, Sapsford has relisted the Palisade just as its operation is starting to boom. Its entry to an even hungrier market than 18 months ago will likely see competition even fiercer to achieve bragging rights to the former dock-workers local.
The unique position and heritage of the hotel could amount to global appeal. Expectations of it fetching over $30 million are modest against comparable world-class boutique assets in Asia or the USA.
It is being marketed by JLL Hotels’ national director – investment sales John Musca, and executive vice-president – investment sales Peter Harper, who say having a drink atop the Palisade is becoming one of Sydney’s must-do experiences.
“I took the global chairman of JLL there when he was out from London, and since then other international office heads always ask to go when they come to Sydney,” Musca told PubTIC.
“It’s the most spectacular asset I have ever had the privilege of representing, and anyone who has ever been to the Henry Deane roof top bar at ‘Palisades’ comes away literally speechless at the Harbour Bridge, Barangaroo and city views.”
The rebirth of the Darling Harbour area includes the new Exhibition Centre, a 600-room luxury hotel, nearly 300,000 m² of commercial office space, and 800 residential apartments.
A hotel was first built on the site of the Palisade back in 1880, beside the stake (palisade) fence in the street. In 1912 the current structure was built by the Sydney Harbour Trust, intended for the port workers and local community.
It goes to market via an Expressions of Interest campaign, closing Wednesday, 30 November, 2016.
