Sydney’s white-hot pub market continues despite closures with sale of the languishing Dry Dock Hotel to new specialist entity Peninsula Hospitality Group.
Recognised as one of Balmain’s oldest pubs, established 1857, the Dry Dock is adjacent to the Balmain Ferry terminal and Mort Bray Park.
The 164-year-old pub is ready for a significant renovation and refurbishment, and came to market in July spruiked as a veritable “blank canvas”.
James Ingram, who brings over 25 years hospitality experience, including with Merivale, Solotel and most recently Hawkes Brewing Co, has partnered with a group of seasoned investment professionals that includes current and former Balmain residents very familiar with the area.
The newly formed Peninsula Hospitality Group (PHG) is understood to have paid just north of the anticipated sale price of $7.5 million.
PHG intends to invest substantial capex through the hotel, repositioning it with a new food and beverage concept to better resonate with the locals.
“Our attraction to the Dry Dock was that it has a large 645sqm footprint, a logical layout and is possibly the last real opportunity to acquire and renovate a venue of scale in Balmain,” stated Ingram.
“I’m excited about what we can deliver to the local peninsula community as I believe there is room for a very strong food and pub offering in this dynamic precinct.”
The new operators will initially continue operation of the pub in its current form while they plan the changes and enhancements.
“Our aim is to retain the Dry Dock’s character, but with a refreshed vision to deliver a high-quality hospitality experience.”
While there was some consideration given to postponing the sale campaign until hotels, including the Dry Dock, reopened, its launch reportedly attracted intense interest from a broad range of buyers, also including restaurateurs and developers. The campaign ultimately yielded six offers to purchase and a vendor “delighted with the result”.
“I was slightly apprehensive around selling the hotel during the COVID-19 closures and restrictions, but the boys were confident in achieving my desired outcome, and to their credit they delivered,” offered outgoing owner Michael Patterson, who purchased it from Jaz Mooney’s Pelathon in 2014.
Significantly, the sale represents another Sydney pub listed and sold during the current closures – newly flagged to end mid-October – which is indicative of the industry’s resilience and will help propel it toward relaunch.
“The sale of the hotel demonstrates that while trade has been interrupted yet again by the CV-19 restrictions, demand for high quality pub assets has not softened whatsoever,” notes HTL Property’s Sam Handy, who managed the sale with colleague Blake Edwards and in conjunction with Peter Seeto of Cabmon Property.
