One of inner Sydney’s best known pubs, the Oxford Hotel, has changed hands for circa $34 million in a move that marks the second largest gaming transaction in Australia this year.
Located at 195 Victoria Road in Drummoyne, the asset is one of inner west Sydney’s most popular venues, having recently undergone a $4 million revamp.
Owned by the Iris Capital Group, the property occupies a combined 974sqm site area with future height development potential and the scope for a rooftop bar with extensive city views.
The sale included 30 gaming machines, impressive new beer garden and basement parking additions.
The sale comes after a busy year for Iris Capital Group, having divested interests in the Crest Hotel, Kings Cross and the Crown Hotel Parramatta to Chinese development group Greenland, who subsequently commenced sale programs for the residential redevelopments.
CBRE Hotels National Director Daniel Dragicevich and JLL National Director John Musca negotiated the sale on behalf of Iris Capital.
Mr Dragicevich said the sale was continued evidence of buyer demand for premium hospitality assets.
“The Oxford Hotel is a true AAA-grade diversified hotel and the result achieved reflects the scarcity of such quality assets in the Sydney metro market,” Mr Dragicevich said.
“The market has again experienced a year of high asset turnover and sales activity as the spread between capitalisation and borrowing rates remains attractive to both existing participants and new entrants into the pubs sector.”
Mr Dragicevich added: “This asset is a rare example of a strong gaming centric venue that also has significant and growing contributions from on-premise bar and food revenues, which is a unique balance reserved for hotels with limited competition in high density precincts.”