The embattled Tattersalls Hotel at Lithgow is set to soar again, after a lengthy legal battle, receivership and auction sees a new start for a familiar face.
The freehold title of the pub was bought nearly ten years ago, occupied by a tenant paying unrealistic rent, who soon broke the lease on the basis the business was not viable.
The landlord and publican spent eight years in Court over the dispute, the tenant eventually prevailing and awarded several hundred thousand dollars in settlement and legal costs.
The titleholder was subsequently forced into administration on the property after failing to pay the amount awarded, the pub closed around two months ago.
Last Friday it went to public auction with Ray White Hotels, drawing eight registered parties and six bidders on the day, including the anticipated contingent of Sydney publicans seeking opportunity.
It occupies a 1,760sqm block in the centre of Lithgow, with bistro and commercial kitchen, 24 accommodation rooms and gaming room with 12 EGMs, providing for a strong mixed-revenue business in the Blue Mountains town.
Receiver on the property, Morgan Kelly of Ferrier Hodgson, said the response was indicative of the times, seeing few receiver sales.
“There was a lot of interest in the pub through the campaign, and the level of interest before and during the auction really shows the ongoing strength of pub assets and the market,” suggested Kelly.
“Strong pricing isn’t just a Sydney metro phenomenon either; a non-metro, good gaming hotel with multiple income streams remains a highly desirable asset.”
Beating the capital competition, the winning bidder at $1.7 million was the former tenant and damages recipient, Mike Schmidt, who will set about re-establishing his former operation under a new guise.
Schmidt chose to not comment on the buy or the long-fought issues. Ray White’s Xavier Plunkett, agent for the deal, similarly declined.
“We wish him every success with the future of the venue,” added Kelly. “It’s a good asset, with a lot of potential.”
