THE Australian gaming market continues to run hot with the $34 million sale of one of the best known pubs in inner Sydney, the Oxford Hotel.
The sale of the Drummoyne property represents the second largest gaming transaction in Australia this year and comes on the heels of a $4 million refurbishment.
The sale, which included 30 gaming machines, has been buoyed by further development potential for the property which is located on a 974sqm site on Victoria Road.
The property has future height development potential and the scope for a rooftop bar with extensive city views.
The property has been sold by Iris Capital Group, which has sold down interests in a number of hotel properties this past year.
These include Crest Hotel Kings Cross and the Crown Hotel Parramatta which were sold to Chinese development group Greenland, who are undertaking residential developments on the sites.
The Oxford Hotel sale was negotiated by CBRE Hotels national director Daniel Dragicevich and JLL national director John Musca.
Dragicevich says the sale shows solid 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," he says.
"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."
Dragicevich describes the Oxford Hotel as a 'rare example of a strong gaming centric venue' that has upside potential.
"It has significant and growing contributions from on-premises bar and food revenues, which is a unique balance reserved for hotels with limited competition in high density precincts," he says.
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