The Banksia Hotel, Rockdale in Sydney’s south has been sold by Monarch Hotels for approximately $26 million, at a reported yield of sub-8 per cent.
The purchaser was well-known hotelier Patrick Ryan who added the asset to his family’s extensive hotel portfolio.
It is speculated that, Monarch, which is backed by the US financiers, Varde Partners and York Capital, could look to cash in on the strength of the pub market and look at a sale of its entire portfolio, worth approximately $250 million.
The Monarch portfolio, co-owned and operated by Joel Fisher, would offer potential purchasers over 200 gaming machines spread across eight venues.
The Acacia Ridge Hotel in Brisbane’s south and the Belmore and Lidcombe hotels are three of the hotels in the Monarch stable.
The agent handling the Banksia sale was Ray White's Asia Pacific director, Andrew Jolliffe.
The Banksia hotel transaction comes after the Rocksia hotel in Sydney’s inner-west sold late last year for $36 million to the Feros Group’s Oscar Hotels chain.
It spent less than two weeks on the market and fetched a reported yield of under 8 per cent. The hotel is located within the burgeoning Wolli Creek to Rockdale growth corridor on a large 4,218 square metre island site on the Princes Highway, adjacent to the Banksia Train Station. The site has future development potential.
A number of hotel transactions have marked a buoyant market for pubs in Sydney in particular.
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In November, the Hotel Centennial in Woollahra was bought by Justin Hemmes’ Merivale Group for a reported $15 million, following a buying spree by Hemmes and Merivale.
The Ryan family sold The Republic Hotel last year in Sydney’s CBD to an international property fund for a reported more than $20 million. Ryan has leased back the operation of the hotel.