A local developer with a growing hotel portfolio has bought the Alliance Hotel in Spring Hill for an undisclosed sum, looking to further its place in the sector.
The three-storey Hotel was built 1888, the design the work of well-known architect John Beauchamp Nicholson.
Perched on a 478sqm corner site on a crest of Boundary Street, at street level it offers a public bar, bistro and kitchen, the ‘chalet’ bar and function room on the lower level, and upstairs another function room and a manager’s residence.
A campaign to sell the freehold going concern began last February under instruction from receivers and managers McGrathNicol.
The buyer of the freehold is Silverstone Developments, steered by managing director Troy Daffy.
It comes under lease to Peter and Nikki Cedergren’s PT Hotels until April 2022, plus two five-year options.
Silverstone works in the space of specialty developments and attributes some of its success to a willingness to adapt to the demands of the market and the economy.
In 2020 it bought the nearby International Hotel in Spring Hill. While this now sees plans for a mixed-use development, the company is expanding its interests in hotels and has disclosed its intention to hold the Alliance as a long-term investment.
Daffy likes the charm of the old building and says it is “a great pub”. The company intends to work with the tenants to “preserve the heritage” of the 133-year-old building.
Ray White Commercial’s John Dwyer and HTL Property’s Glenn Price, Brent McCarthy and Andrew Jolliffe were appointed to run the campaign, noting the breadth of buyers emerging in an “aggressive” investment landscape, and financial benefits in commercial property.
“The current cost of debt is attracting gentrified investors, private equity, family offices and corporate groups to expand portfolios,” stated Price.
