The Kospetas family has bookended its portfolio swap-shuffle with Barham Hamarashid, completing the off-market sale of The Mill in Bondi Junction, following exchange on the Evening Star.
What was the Mill Hill Hotel was a modest two-storey premise previously owned and operated by the Waugh family.
It was acquired by developer TWT Property Group, which constructed the NewLife development on the site, bringing a residential tower and ground floor commercial tenancies, including space for a new hotel venue. Works were completed late 2019, and an invitation to take up the lease was put to tender.
The Kospetas’ Universal was selected for the new 20-year lease, paying TWT about $2 million in 2020.
They opened The Mill later that year, amid COVID restrictions, offering a nod to the history of the original Federation-built venue, striving to salvage and restore its heritage while implementing a refreshed and innovative vision to service the Bondi Junction community. Every interior element was carefully selected in strict attention to detail for the high-end finishes throughout.
Universal CEO Harris Kospetas offered that they were running the venue “as an upmarket gastropub bistro with great tap beer, cocktail and wine selections!”
Four years later The Mill has firmly established itself as a hospitality destination in Sydney’s affluent east, showing a well-balanced mix of trade via food, beverage and gaming.
With 16 years remaining on the lease, Universal has been in discussions with Hamarashid, and a deal manifested for the family-owned group to buy the strata title of his Evening Star in Surry Hills for around $16 million.
Operation of The Mill is now understood to have sold for circa $4 million, with Hamarashid, who also holds the Cecil Hotel in Casino and Winmalee Tavern, due to take over in November.
Realising a strong focus on the Sydney CBD and fringe, Universal Hotel Group counts 20 pubs but has been undergoing something of a recalibration. Earlier this year the group took over the Palace Hotel in Haymarket and leased out the Bat & Ball, and while it bought in Surry Hills, it is currently trying to divest in Newtown.
Sale of The Mill and Evening Star was through JLL Hotels’ Ben McDonald and Kate MacDonald, who note the limited availability of pubs in this price bracket in the area was a key motivator for Hamarashid.
“With publicans having a greater focus on earnings given the current lending environment and respective debt covenants, high cashflow leasehold assets are drawing greater interest from savvy hoteliers seeking to bolster their portfolio returns,” said McDonald.
