The dynamic Hunt Hospitality has agreed to sale of its large-format Lakeside Village Tavern at Raymond Terrace, to the growing stable under Nicholas Quinn.
Stephen Hunt’s pub group has been refreshing the books since the new financial year, to optimise opportunities where they are seen.
In September the call was put out to further build the investor fund, and in November a hard-fought deal was won to land the Kent Hotel in Newcastle, producing a record sale price for the area.
In 2018, the award-winning hotelier had shopped a couple of assets in the portfolio to gauge potential, finding buyer for the Rutherford Hotel in a partnership involving Newcastle licensee Nicholas Quinn, backed by a posse of established publicans.
This vehicle also holds title on Maitland’s Windsor Castle Hotel and the recently acquired Bank Hotel, in collaboration with Laundy Hotels, as well as the Bradford Hotel, also in Rutherford.
Due diligence on the Rutherford brought Hunt’s Lakeside to the attention of the Maitland-based syndicate, and recently an offer was made.
“We have had our eye on the Lakeside for some time, so we were very excited to finally get our hands on it,” says Quinn.
“The hotel gives us an opportunity to expand into a different market and embed ourselves into the local community.”
Accepting circa $12 million for Lakeside, at what is reported as a “significant premium to book value”, Hunt says the decision makes sense for their direction and new enterprises.
“Hunt Hospitality is forever assessing the market for both buy and sell-side opportunities and when the approach was made, the pricing and ease of transaction made for a deal we couldn’t refuse,” he says.
“We can now redeploy that equity into our other venues at what we believe will be a superior return than if left in-situ at the LVT.”
The freehold going concern asset on 6,068sqm is adjacent to a small village shopping centre, and features bar, bistro, drive-through bottleshop and gaming room with 22 entitlements, delivering weekly revenue of approximately $96,000.
It was transacted through Dan Dragicevich and Blake Edwards of HTL Property, which notes 11 sales in the region in the past year, and yield contraction of 150-200 bps during that time.
“We often see experienced clients recycling capital via strategically timed acquisitions or divestments and this transaction is representative of such portfolio hygiene,” suggests Edwards.
