The pub sector is running hot with investors buying up licences in the suburban fringes.
One of the latest deals was by the diversified hospitality operators Colonial Leisure Group, which has made its first move into NSW with the acquisition of the leasehold interest in the Newtown Hotel from the Keystone Group.
Colonial, whose interests include the Townsville Casino, Perth Hotel landmarks Print Hall and The Raffles, Botanical in Melbourne and the Colonial Brewery in Margaret River, moved to acquire the award-winning Newtown Hotel business in an off-market transaction managed by JLL national director John Musca.
The sale follows recent acquisitions of Sydney food and beverage-centris leasehold hotels by the Melbourne-based Dixon Group in the lead-up to a mooted 2016 float.
Suburban pubs are in higher demand, as the sector undergoes change with the Sydney early morning lockout laws that are in effect across the city and Kings Cross.
"The bar has noticeably raised in Sydney over the past three years for on-premise hotel offers, mirroring the small bar proposition-led approach but introducing scalability, so interest in acquiring leasehold opportunities is a natural evolution of that," Mr Musca said.
"We've now sold three hotels in Newtown, more recently the Queen Victoria to the Merivale group, so the gravitation of Sydney's best operators to the precinct highlights the strength of the area as a sustainable trading hub."
In another deal, the Balmain Town Hall Hotel was snapped up for $7 million following a hotly contested sales campaign.
The Balmain Pub Group secured the Balmain landmark, which was established in 1879 and benefits from a prime location on the corner of Montague and Darling streets on a prominent 445sq m site.
The two-level hotel features a ground-floor bar, bottle shop and upstairs dining area with second bar, as well as a seated balcony overlooking Darling Street.
CBRE Hotels' national director, Daniel Dragicevich, negotiated the freehold sale of the prominent inner-western Sydney venue in conjunction with Knight Frank on behalf of brothers David and Phillipe Du Maurier.
Mr Dragicevich said the sale was evidence of continued momentum in the Sydney hotel market.
"This sale kicks off what is expected to be another strong year of pub sales, as appetite for quality assets continues amid low borrowing rates and favourable buying conditions for purchasers and long-term owners," Mr Dragicevich said.
"This transaction also highlights the depth of buyers currently active in the sub-$10 million metropolitan hotel market, reinforcing that market buoyancy is not just limited to the top end of town."
The sale takes Balmain Pub Group's stable of assets to five, following their acquisition of the Greenwood Hotel in North Sydney last year.
