Another big year predicted in pub real estate kicked off with news of White & Partners divesting suburban stalwart the Engadine Tavern to a local for $31 million, realising nearly 40 per cent in capital gains.
A trust controlled by the White family’s investment arm has on-sold the Tavern, having successfully positioned it for a major development opportunity.
The freehold going concern was acquired by the trust in 2018 for around $22 million, representing a six per cent yield.
The pub boasts a 5,576sqm footprint, incorporating a large, single level complex close to the train station, offering public spaces, gaming room with 26 machines, stand-alone drive-through bottleshop, separately accessed function centre, and 60-space carpark.
White & Partners secured development approval for a residential project of 64 apartments on the site of the carpark, including negotiating a modest land swap with Sutherland Shire Council, which optimised the development’s layout while slightly enlarging the adjacent Engadine Town Park.
The unnamed purchaser is said to be a new entrant to the pub game, but an experienced local developer, expected to swiftly capitalise on the opportunity following settlement.
Despite the subdued and oft troubled trading conditions of 2020, the sale sees a 39 per cent gain for the trust.
The sale process capped a dynamic year for HTL Property, managing agents Dan Dragicevich, Andrew Jolliffe and Sam Handy pleased with the results of a competitive bidding process timed to take advantage of the “market rush” closing out a turbulent 2020.
“There exists considerable depth at the top end of the market, with a profusion of unsatisfied buy-side appetite still on the lookout as we commence the new year,” offered Dragicevich.
