Private investor scoops Sydney fringe pub
By James Atkinson
Ray White Hotels has sold the first of three pubs put on the market through a national campaign on behalf of the same owner.
Railz Hotel on Regent St, Redfern, a multi-storey venue with 25 gaming machines, has been purchased by a private investor for $6.8 million.
Ray White Hotels director Andrew Jolliffe told TheShout the deal further highlights the elevated interest in Sydney fringe CBD suburbs like Newtown, Glebe and Surry Hills.
He said the hotel enjoys 18-storey development capacity zoning, but the purchaser intends to operate it in its current format.
"The hotel is one of three hotels Ray White Australia is marketing via a national campaign for the same owner, the other two being The Homestead Hotel and The Waterloo Bay Hotel both in Brisbane," Jolliffe said.
In recent weeks, Ray White also sold the accommodation hotel Rae's on Watego's Beach in Northern NSW for about $20 million.
"In recent times investors across a range of asset classes parked equity into cash applications, however downward pressure on interest rates means that cash is no longer king," Jolliffe said.
"As such, investors wanting to enjoy first mover benefits are looking buy yield back via hard asset investment, and there are few better asset classes to do so than hotels."
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