Iconic Terrey Hills Tavern in Sydney's Northern Beaches listed with $40 million hopes
The Terrey Hills Tavern, a well known watering hole in Sydney’s Northern Beaches, has been listed with price expectations of more than $40 million.
The pub market has picked up in the last few months, highlighted by the sale of Beach Hotel in Byron Bay for $70 million and the Clovelly Hotel overlooking Clovelly Beach changing hands for $34 million.
The Northern Beaches hotel has been placed on the market by Feros Group, led by Sydney publicans Nick and Chris Feros.
The group is working towards a Christmas opening of the newly-developed Highfields hotel in Caringbah with any sale of Terrey Hills Tavern helping them with funds to this project, according to Fairfax Media.
The marketing is being handled by CBRE Hotels' Daniel Dragicevich and Sam Handy.
The listing of Terrey Hills Tavern comes at a time when the Sydney pub market is thriving, with about $650 million in top-tier pubs changing hands over the past 18 months in 26 separate deals.
Terrey Hills Tavern sits on 15,870 sqm and the agents say its annual revenue exceeds $11.6 million. It is widely considered to be the jewel in the crown of the Feros Group portfolio.
CBRE national director Dan Dragicevich said the tavern ranks alongside other Northern Beaches favourites such as the Newport Arms in terms of the scalable nature of the business and sheer size of the operations.
"The hotel was also well positioned to capitalise on the nearby Ingleside land release and master-planned mixed-use development, which would add an additional 3400 new homes and 13,600 new residents to the immediate area," Dragicevich said.
Handy added that the Terrey Hills Tavern was virtually "unopposed within its catchment area and was a genuine community focal point for tens of thousands of residents in the surrounding suburbs".
He said the tavern was expected to attract interest from hoteliers due to the $11.6 million annual cash flow, through to land bankers and developers.
