Universal Hotels has won its first bout for 2022, taking home the Bat and Ball Hotel of Surry Hills.
Originally known as the Duke of Cleveland, the pub was built in 1929 on the corner of busy Cleveland and South Dowling Streets. Its proximity to both the Sydney Football Stadium and Sydney Cricket Ground have made it synonymous with sporting events.
It offers a ground floor bar, bistro, function rooms, gaming room with 10 machines, 2am liquor licence and 15 accommodations rooms, on a 504sqm landholding.
It also provides a future owner potential for a first floor beer garden (STCA).
The freehold going concern was purchased in 2014 by Cator Investment for around $4.5 million, and has been operated in recent times by Dean Francis and Marty Ball.
Incoming purchasers are Jim, Harris and Steven Kospetas of the acquisitive Universal Hotel Group, reported to have paid around $10 million.
It joins the Universal stable, already counting the Civic Hotel, Universal, V Bar and newly opened The Mill in Bondi Junction.
Having sold the Taylor Square stalwart Kinselas late 2020 for around $45 million to Dan Brady’s MA Hotel Management, in 2021 Universal picked up the Tempe Hotel for around $10 million and leasehold of the Newtown Hotel for $5 million.
“As a family, we’re always active in the marketplace, and the opportunity to add this landmark property to our portfolio was something we mobilized quickly to achieve,” offered Harris Kospetas.
The Bat and Ball follows comparable inner city sales in 2021, including the Hotel Hollywood of Surry Hills in May, Kings Cross’ O’Malley’s Hotel in July, Ashton Waugh buying the Grosvenor Hotel of Waterloo in August, and Balmain’s Dry Dock Hotel selling in September.
Agents say Sydney’s inner-city and fringe market presents strategic investment opportunities, underpinned by valuable commercial land holdings.
The complex three-party deal on the Bat & Ball bringing landlord, tenant and purchaser together was negotiated by HTL Property’s Blake Edwards and Sam Handy.
“Having sold the hotel to the vendor, we were delighted to again enjoy engagement to find an exit solution honouring the objectives of all deal participants,” said Edwards.
