Sydney publicans eager for taste of Newcastle hotel

The Queens Wharf Brewery hotel on the Newcastle Harbour has been listed for sale with hopes of about $8 million. 

The two-storey hotel, a popular entertainment venue in Newcastle, is located directly over the water at 150 Wharf Road and is part of the Honeysuckle wharf development. 

Up for sale is a ground- and first-floor bar, an a la carte restaurant, a gaming lounge with 15 poker machine entitlements, TAB facilities and a licence for the adjoining wharf area. The offering includes a development application approval for an alfresco gaming area. 

It last changed hands in August 2008 when it was bought by publican Michael Hogg for $8 million. 

In an arrangement that will run until 2019, Newcastle City Council earns $375,000 a year or 7% of the hotel's turnover, whichever is greater, from its ownership of the brewery. The new owner will have the option to extend the agreement to 2033. 

An expression of interest campaign closing September 22 is being steered by CB Richard Ellis’ Joel Fisher and Daniel Dragicevich in conjunction with Mike Wheatley of Knight Frank.

According to Wheatley the hotel brings in income of more than $10 million a year. 

He told Property Observer the listing has attracted a lot of interest from the Newcastle and Hunter regions and from Sydney publicans. 

“There is not much of similar quality in Sydney, so they’re making enquiries,” he says. 

“It’s a pretty unique asset,” he says. 

Fisher says although the vendor has listed the property for sale, a joint venture would also be welcomed from passive investors. 

“The hotel has favourable lease terms until 2033 with the rental effectively set at 7% of annual turnover,” he says. 

Dragicevich expects the hotel to appeal to a mix of traditional pub owners and operators, new entrants to the sector as well as newly established syndicates.