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News release

Sydney

Iconic Golden Sheaf Hotel sold

Largest Sydney pub investment sale since 2008


CBRE Hotels and JLL's Hotels & Hospitality are delighted to announce the sale of the freehold interest in the iconic Golden Sheaf Hotel, Double Bay. Private eastern-suburbs investors have acquired the trophy asset on a sale and leaseback basis in a competitive Expression of Interest process.

The hotel has been owned and operated by interests associated with widely esteemed hotel investment and operating group Solotel for nearly 20 years, recent winners of the tenders for the continued operation of the Sydney Opera Bar and for the new circa 1300sqm hospitality complex in Barangaroo. The Golden Sheaf was sold on the basis of a long-term, triple net lease-back with fixed annual rental growth reflecting a circa 6.5% yield. It is the largest investment hotel sale in Sydney since the JLL sale of the Castle Hill Tavern freehold interest for $54 million in 2008.

John Musca, Director – Investment Sales, JLL's Hotels & Hospitality Group, said, "The yield achieved on the sale was a deserved reflection of the quality of the tenancy covenant as an established, industry-leading national operator and the genuine trophy asset nature of this property."  

The hotel occupies a 1669sqm site area with future development potential (STCA) and the sale included 30 gaming machines. Surrounded by the recently completed and award-winning Kiaora Lands Woolworths retail complex, the hotel resides at the heart of the Double Bay resurgence which has seen the newly opened five-star Intercontinental Hotel and retail demand create a business vibrancy not seen for over a decade.

Daniel Dragicevich, CBRE Hotels Director stated, "The robust investor interest from both overseas and local parties highlights the flight to quality that is occurring in the national hotel market, with significant buyer demand for quality hospitality assets."