Hotel sales: Oaks and Sundeck sells
capital gains
With winter fast approaching, the Sundeck Hotel in Perisher Valley, said to be the highest altitude hotel in the country, has been sold by owner Cliff Wallis after more than 30 years.
It was purchased by hospitality investor Peter Dean but the price was not disclosed.
Located approximately 1769 meters above sea level, Sundeck is a ski-in and ski-out mountain resort located on the slopes of Kosciuszko National Park.
The hotel was built in 1959 and rebuilt shortly after a fire in 1960. The property has 41 rooms, a public bar, dining room, commercial kitchen, guest lounges, sauna facilities and ski storage areas. It can accommodate up to 90 guests per night.
The deal was negotiated by Leonard Bongiovanni and Ray Larkin of MQ & Associates and Michelle Stynes and Alex Cherry of Forbes Stynes Prestige Property Sales.
Gallagher parts ways with Oaks
The sale of the famous Oaks hotel on Sydney’s lower North Shore for $140 million has added further fuel to an already hot pub sector.
An 80-year-old oak tree dominates the pub’s beer garden.
After 50 years of ownership, the property was passed on by the Thomas family, led by patriarch David, known as “Taffy”, and his son Andy.
Close to $250 million in hotels have been sold so far this year, including the Oaks, making it one of the busiest periods since the global pandemic hit the industry six years ago.
Pubs are popular not only because of the stable income they provide owners from rent, gaming, food and drink, but also because of the increased underlying land value.
Sydney hospitality hub Gallagher Hotels has acquired the landmark Oaks at 118 Military Road, Neutral Bay. His stables include Jacksons in George and the Longueville hotel in Lane Cove.
The deal is the second highest price paid for a pub in Sydney after Crossroads at Casula changes hands for $160 million in 2022. Owner Sonnel Hospitality was recently given the green light for a major redevelopment program of the pub.
David Thomas’s involvement with Oaks began in 1975, when he purchased the leasehold interest in Tooth & Co with the support of his mother Alala.
Sold through John Musca and Ben McDonald, Oaks occupies a prime 2,188sq m corner site in a mixed-use precinct that allows up to five storeys for development.
The Caledonian Hotel in Singleton is for sale with an expected price of around $15 million.
The 2226sq ft corner space is for sale on behalf of local husband and wife team Helen and John Hill. This is their second tenure of ownership, having purchased the asset back in 2014.
Known to locals as Cali, the hotel comes with 14 accommodation rooms and a three-bedroom residence, as well as the option of rental conversion.
Savills agents Nick Lower and Hugo Weston are advising on the sale.
Parramatta office
The former Ernst & Young commercial building at 33 Argyle Street in Parramatta has been put up for sale by private group Tong Eng and Roxy Pacific.
The 10-storey building, on a large 2048 square meter site, is located in the heart of Parramatta’s vibrant city district. It has a net leasable area of 5234 m2, ground floor retail space and a three-storey car park for 142 vehicles.
Tong Eng and Roxy Pacific purchased the property in January 2019 for $40.8 million from the Aboriginal Land Council of New South Wales, which had held it since 1992.
The site has development approval for a 60-storey mixed-use tower. The approved concept scheme includes build-to-rent flats, commercial office space and retail stores.
Colliers representatives Catherine Scott, Tyler Talbot, John McCann, Alex McColl and Harry Bui are managing the sales campaign.
farm sale
The NSW Farmers Union has sold its headquarters at 154 Pacific Highway in Greenwich to a private investor.
No price was disclosed, but the group paid $60.2 million in 2018 for the 10-storey commercial space on the lower north shore. Formerly known as the Johnson & Johnson building, the 6,300 square meter building has towering views of Sydney Harbour.
The association’s chief executive, Annabel Johnson, said the transaction was “consistent with the association’s mandate to redistribute capital into other initiatives that will directly benefit NSW farmers”.
Colliers’ Tom Appleby, Joseph Lin and Guillaume Volz advised on the sale.
carolynannecummins@gmail.com
The Business Briefing newsletter delivers big stories, exclusive news and expert insights. Sign up to receive it every weekday morning.
