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Sunnybrook Hotel, Warwick Farm - Creating higher buyer expectations

​April 2011 - ​The Sunnybrook Hotel in Warwick Farm was a freehold going concern asset that had been for sale for many years. A full marketing campaign was conducted by a competitor agency on behalf of the owners which did not deliver an outcome at an acceptable price point or structure for the owners. In need of substantial CAPEX and as a hybrid tavern/accommodation/function centre, the asset offered significant refurbishment and trade uplift scope, but was tired and reported a decline in earnings. Ferrier Hodgson were appointed as Receivers and Managers and commissioned JLL to market and conclude a sale on the asset.
 
JLL's Hotels & Hospitality team recommended ‘repositioning the asset’ in the marketplace as an ‘underperforming gaming hotel with rooms’ rather than an accommodation driven proposition. We facilitated the execution of a separate lease on the ‘Function Centre’ component of the asset, mapped the gaming revenues being generated by the nearest five hotels by comparison and introduced Accor and Holiday Inn as accommodation operators to provide independent trading forecasts for the rooms component. In doing so we re-engaged Sydney’s gaming publicans with the asset and delivered a low-risk operating solution for the accommodation and function room components of the property.
 
Four genuine bids were received in the EOI programme and, after a two week shortlisting process, the asset was sold unconditionally for AUD18.6 million - a 25% premium to the banks mortgagee valuation of AUD15 million. The outcome was another ground-breaking result. It was borne out of JLL and the Receivers joint strategy to distance the asset from the supressed prior market pricing expectations, and a legacy of buyer procrastinations.  This elevated it’s attraction and perceived competitive tension, to deliver an above market outcome. ​

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