An up-and-coming developer has bought Sydney’s famous The Republic, prompting speculation the pub may see redevelopment.
The trophy hotel has reportedly sold for around $40 million to diversified property group Virtical, which it’s said is seeking to capitalise on its strong underlying attributes, including its CBD core location.
Led by MD Mark Toma, Virtical described itself as a fast-emerging “property development powerhouse” that creates large-scale residential, commercial, industrial and tourism projects. It boasts more than 50 years’ combined experience in its directors, and more than $500 million in completed projects, counting Double Island Luxury Resort, The Chifley at Lennons Brisbane, All Season Styles Katherine, Aurora Kakadu Lodge, All Seasons Hotel Alice Springs, Frontier Hotel Darwin and Hotel Sebel.
Located in the centre of Sydney’s CBD and a landmark of Pitt Street, the Republic began as a single storey structure back in 1865. It grew to four levels, and in 1998 the Ryan family bought the 228sqm site, and in 2002 converted it into a pub. In 2017 they sold the freehold to One Funds Management, a Singaporean Investment Trust, and Patrick Ryan stayed on to operate it until 2018.
At street level is the chic Republic Bar. On Level One is the famed gastro offering Republic Dining, and the top level ‘roofless’ space is known as Taylor’s Rooftop Bar, featuring an all-weather retractable cover.
The Hotel boasts a rare 5am trading licence and holds 28 gaming machines, the business generating total weekly revenue in excess of $120k. It is close to some broad development activity, from which it is expected to benefit.
Over $2 billion in pub transactions took place in 2022, with most coming out of NSW, and The Republic was listed on behalf of the trust in August with high expectations.
Its sales process reportedly drew high demand, as private operators, syndicated capital and traditional real estate investors vied for the title.
The sale was through a campaign by JLL Hotels’ Ben McDonald and Savills ANZ’s Nick Lower, who have described it as “one of the most significant” to date for 2023, tempting a new player into the mix.
“This transaction speaks to the enduring appeal of pubs that hold a unique place in the urban fabric of the Sydney CBD,” says McDonald.
“The sale of the Republic Hotel demonstrates the continued demand of well trading pub assets that benefit from strong underlying real estate,” furthers Lower.
