Sydney, 4 February 2014 – One of Drink ‘N’ Dine’s first venues, the award winning Carrington Hotel, is up for sale in a move tipped to test the waters of Sydney’s pub market in 2014.
Situated in the heart of Surry Hills, at the sought after address of 563 Bourke Street, the popular inner city venue forms part of Drink ‘N’ Dine’s extensive pub portfolio, which includes the renowned Forresters and Norfolk hotels.
CBRE Hotels’ Dan Dragicevich and Joel Fisher, who have been appointed to sell the venue via an Expression of Interest campaign, said the sale was in line with Drink ‘N’ Dine’s expansion strategy.
“Having entered the industry initially with the 2009 purchase of the Norfolk Hotel, Drink ‘N’ Dine has expanded rapidly, adding to its current stable of five venues with the recent re-opening of the Oxford Hotel in Petersham,” Mr Dragicevich said.
“The group is renowned for revolutionising down and out hotels in some of Sydney’s most vibrant areas. Unfortunately, as Drink ‘N’ Dine has expanded, the more boutique, hands-on ‘Carro’, as it is affectionately known, has become ancillary to the rest of the portfolio.”
The sale marks the first time Drink ‘N’ Dine has sold one of its venues, Mr Dragicevich explained, adding that the divestment will free the group up for further expansion.
Drink ‘N’ Dine co-founder Jaime Wirth said the decision to sell was bittersweet.
"It’s difficult parting with any of our venues, but we have decided that streamlining the group is best for the immediate future,” Mr Wirth said.
“We have worked hard at establishing the Carrington Hotel as both a pub and a restaurant. The venue was awarded three schooners in the 2012 SMH Good Pub Guide, nominated for Best New Hotel 2013 in the Bartender Magazine awards and received a 15/20 SMH Good Living review.”
Mr Fisher said the sale came off a watershed year in 2013 for the pub market, where yields had sharpened considerably and sales activity had continued to grow.
"There is resounding appetite from current players as well as new entrants for quality metro assets. There is resounding appetite from current players as well as new entrants for quality metro assets. This can be directly attributed to continued low rates and a lack of stock available,” Mr Fisher said.
“The Sydney market especially has been relatively tightly held and we believe Drink ‘N’ Dine’s test of the supposed sellers’ market may be a sign of things to come as 2014 develops.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.