The iconic The Oaks of Neutral Bay has been put to market by the Thomas family, with expectations the internationally renowned pub could set a new high water mark in booming pub real estate.
Sale of the freehold operation represents the first time ever to market, after nearly 50 years’ curation by the Thomas’ of the famous corner pub, with its picturesque beer garden under an 80-year-old English Oak tree.
Patriarch David ‘Taffy’ Thomas began his tenure in 1975 when he acquired the leasehold interest from Tooth & Co, with support from his mother, Alala.
The Oaks resides on a prominent 2,188sqm corner of Military Road, offering Taffy’s Sports Bar, Alala’s Cocktail Bar, the Bar & Grill Restaurant, gaming room with 30 machines, extensive first floor function spaces, high-end retail bottleshop, and the acclaimed beer garden.
The property is zoned B4 Mixed-Use, with favourable planning guidelines, allowing for a development of up to five storeys (STCA).
Over the past half-century is has become the drinking establishment of choice for many famous identities and sports stars, and now its legendary hands-on operators say they are ready to pass custodianship to the next owners.
“On the back of a spate of unsolicited approaches it just feels like the right time for the family to move on and we’ll leave The Oaks with fond memories and many friends,” offers family representative Andrew Thomas.
“It holds a very special place in the Australian hotel landscape, and we look forward to seeing its next incarnation under the new custodians.”
The Thomas family will remain in the game with continued owner-operation of their Winston Hills and The Entrance hotels.
Built 1885, servicing travellers reaching the north shore of Sydney Harbour, The Oaks is an institution that could never again be replicated in such an exclusive location. Its legend brings travellers from around the world, to visit the ‘must see’ pub on so many tourism brochures.
Sale campaign on The Oaks is being managed by JLL Hotels’ John Musca and Ben McDonald, who suggest it is widely considered the greatest hotel in Australia, and that premier assets of this ilk may come to market only “once in a lifetime”.
“It is difficult to imagine any hotel in the country evoking as much emotion, brand heritage and rites of passage than the illustrious Oaks Hotel,” states McDonald.
Australia’s hotel market continues its recent pace unabated, seemingly unhindered by the cost of debt headwinds befalling other asset classes, enticing close to $2 billion of capital into the sector in the past year as pub trade rebounds with vigour from the challenges of COVID-19.
Scale and consolidation by both institutional and private owners are making for an increasingly competitive acquisition market, tempting droves of family operators into an exit.
Reporting “substantial cashflows” and valuable underlying assets, agents expect The Oaks to generate sale price of more than $175 million, which would make it the largest pub-style hotel sale ever in Australia.
The freehold going concern of The Oaks is being offered via Expressions of interest, closing Tuesday, 6 September.
