Brody Peterson has divested his handsome Village Inn of upmarket Paddington to an interstate investor, as capital holders push to leverage the pub sector.
Established 1850, the pub is a prominent three-level building on a 171sqm site in the inner-city suburb, located between Paddington’s famous ‘Five Ways’ and The Intersection – the unofficial home to Australia’s best collection of fashion brands.
Catering to a savvy clientele, the well-appointed pub features plush leather, pressed tin ceilings and vintage floorboards to satisfy its fashionable locals. It reports annual revenues circa $2.1 million.
The business currently holds approval for ‘parklet’ outdoor seating, and there is scope (STCA) for a rooftop beer garden or function space that would offer CBD views. It also stands well positioned to capitalise on the increased patronage to the new world-class Allianz Stadium for sporting events, concerts and festivals.
Peterson bought the pub in 2013, and undertaking a major refurbishment to bring it more in line with its surroundings rebranded to the Village Inn. Peterson’s Parlour Group still holds the Riley Street Garage in Darlinghurst, and the iconic Hotel Hollywood in Surry Hills, bought mid-2021.
“We’re absolutely delighted with the outcome on the Village Inn and are excited to see what the new owners will do,” says Peterson.
Having listed the property in 2022, the sale has now settled to the private investor, who has installed Ben Stehr of Stehr Hospitality to run operations. A DA is being lodged to repurpose the upper floors, as part of capitalising on potential.
The sale was managed by HTL Property’s Sam Handy and Blake Edwards, in conjunction with Stef Ippolito of IB Property, and agents say they have already been “inundated” this year with investor enquiries about acquisition opportunities, as a trend consolidates in passive freehold owners leasing to a tenant with the skills to add value by installing a more sophisticated offering.
“We’ve been speaking with a lot of Paddington and Woollahra hoteliers over the last few months, and they’re all reporting record trade levels and feeling incredibly optimistic about the trading prospects for the year ahead,” reports HTL’s Sam Handy.
