The acquisitive Pelathon Pub Group has swooped on a Lake Macquarie local as it eyes new candidates for its proven turn-around management.
Pelathon (PPG) is a partnership between the ASX-listed BlackWall Property Funds and long-time operator Jaz Mooney. In April of this year it announced intentions to take the re-structured pub group “to the next level” and strategic plans to build a $100 million portfolio.
Mooney has now negotiated a sharp deal with the Trustee in Bankruptcy for the New Orana Hotel, in Blacksmiths, along the Pacific Hwy just south of Lake Macquarie.
He told PubTIC the pub may yet become part of the new portfolio, but more likely it will be part of a fund of tenanted pubs such as he is familiar with in Britain.
“We’ll fix it up, then who’s to say … it’s a good area for pubs,” pondered Mooney.
“We have four or five targets in mind to run as owner-operators, but this one could be part of a tenanted pub fund like the UK has perfected.
“More than likely we will look at the tenanted model.”
The New Orana Hotel occupies a 2,300 m² block, with 11 PMEs and vacant possession. It ended up in the hands of receivers due to financial troubles by the previous owner, following adventures in development.
The Hotel was marketed by CBRE’s Ben McDonald and Daniel Dragicevich, who note its “entry level price point” and Mooney’s history of re-working under-performing pubs.
“Despite the hotel doors being closed in September 2015, Pelathon have secured an asset in a high-growth region of NSW with limited competition and a significant local population base,” said McDonald.
“I have no doubt that their planned capital expenditure will result in a great hotel offering for the local community.”
CBRE says the regional and coastal hotel market continues to gain momentum, as significant opportunities for both hoteliers and developers continue, through assets supported by strong trade and growing capital values.