Tea Gardens Hotel, Bondi Junction sold

The Tea Gardens Hotel in Bondi Junction has been sold, reportedly for around $37 million to a private investor.

The pub was sold by Melbourne-based publicans Aussie Leisure Group, brokered by Ray White Hotels agent Andrew Jolliffe.

It is set over two levels on its 800 square metre 2-4 Bronte Road with outdoor areas, a highly sought after balcony, large kitchen and 30 gaming machines.

‘‘The annual profit delivered regularly by the Tea Gardens puts it firmly in the A-Grade asset class, irrespective of category, and means that it enjoys similar status to the Coogee Bay Hotel, the Golden Sheaf in Double Bay, the Newport Arms and the recently traded Steyne in Manly and Watsons Bay hotels,’’ Jolliffe advised potential buyers.

Adjacent to Westfields and Myers in Bondi Junction, the heritage listed Tea Gardens hotel is considered a prime asset.

‘‘The latest quarterly Top 200 gaming rankings highlight the hotel’s sizeable jump from 121 in September 2013 to 88 in the state of NSW for the December 2013 quarter,’’ Mr Jolliffe added.

In colonial times, Elenberg Fraser was known just for its The Waverley Tea Gardens Inn. The hotel was laid out with gardens, summer houses, quoit pitches and other games and was known as "a favourite resort for afternoon teas and fun".

It was served by horse-drawn omnibuses from the city and was "a rendezvous for young people to spend their Saturdays and Sundays".

Its art deco features in the replacement pub were restored in the late 1990s by publican Peter Padsworth. After spending more than $1.5 million, business increased five-fold following the renovations.

Aussie Leisure bought the hotel in mid-2006 for $44.75 million. It had previously sold at $7.5 million in 1998. In 1990 Tooth & Co Ltd sold it to Yau Sun Nominees Pty Ltd for $5 million.