NEWS MARCH 2023

NEWS

THE THOMAS FAMILY SELLS THE OAKS HOTEL

One of Australia’s most famed pubs, The Oaks in Neutral Bay, Sydney, has sold.

After nearly 50 years of private family operation, the Oaks was put up for sale by the Thomas family for the first time in its history. While there has been much speculation about the sale, details are being kept strictly confidential.

“I can confirm it has sold to a local family and long-time patrons of The Oaks,” confirmed JLL’s Managing Director John Musca, who handled the sale campaign along with colleague Ben McDonald.

“It is expected to settle soon, and you will see continuity of this wonderful, community business.”

The famed courtyard covered by a central oak tree.

The Oaks possesses a 2188 sqm corner block in Neutral Bay, and comprises five storeys. The diverse business mix includes the upmarket Alala’s Restaurant, The Bar and Grill, Taffy’s Sports Bar, numerous function spaces on both the ground and first floor, VIP Lounge with 30 PMEs, and a bottleshop. Its most famed asset is the large beer garden enveloped by an enormous English Oak tree.

While the acquisition of the The Oaks was always an attractive proposition, the hotel still has further development opportunity. Its inherent future development scope is highlighted by the property’s B4 ‘Mixed Use’ zoning, underutilised GFA and 16m height limit, offering the opportunity to add an additional three levels on top of the existing structure (STCA).

When the sale campaign was first announced, the JLL team stressed the rarity of such an asset coming to market.

“As in all real estate sectors the premier assets often only come to market once in a lifetime, which is even more prevalent in the highly protected hotel industry where assets of this scale and quality will simply never be approved or replicated again in high- end Sydney demographic locations – we’re fundamentally talking about one of the very best hotels in the asset class,” stated Musca.

McDonald agreed, stating: “It is difficult to imagine any hotel in the country evoking as much emotion, brand heritage and rites of passage than the illustrious Oaks Hotel. It’s going to be a remarkably fulfilling asset for the next lucky generational owners.”

At the time, outgoing owner Andrew Thomas said he and his family decided to sell the venue after receiving numerous unsolicited offers.

The Thomas family will retain their ownership of the Winston Hills Hotel and the Entrance Hotel.

LAUNDY BUYS OUT SHORT FROM PUBS PARTNERSHIP

Fraser Short has divested his half of a shared pub portfolio to partner Arthur Laundy, after a decade of working together.

Arthur Laundy and Fraser Short have signed a deal that sees Short cash-in his 50 per cent interest in their jointly owned portfolio of hotels to Arthur and Laundy Hotels. The portfolio includes the Watsons Bay Boutique Hotel, Park House Mona Vale, Northies at Cronulla, Lennox Head Hotel, Illawong Hotel and The Farm at Byron Bay.

Short and Laundy began their partnership ten years ago, investing $10 million collectively to build up an impressive suite of venues in New South Wales that are now worth an estimated $300 million.

Watsons Bay Boutique Hotel

“Needless to say I’m very proud of the venues we created together, how many people we employed, provided opportunities for and delivering a world class group of venues to our guests has been an extremely satisfying journey” stated Short.

Short came to the decision to move on from the partnership after reflecting on his priorities of late.

“The past several years have really crystallised what is important to me and where I’d like to place my energy moving forward,” states Short.

“My late father Warwick, also a very successful publican sadly passed away at 60 years young and I’m only a few laps away from 50. Whilst I’m not planning on going anywhere soon, it’s fair to say that’s always at the back of my mind. I have four amazing kids now, a wonderful wife and after decades of building multiple businesses, managing 1200 staff and dedicating my life to hospitality, it has taken me away from many special family moments.

“I’m very grateful to Arthur and the Laundy family who have been wonderful business partners and are supportive of my position and I wish them nothing but success as they move forward.”

Short also took a step back from his own group, The Sydney Collective, in 2021, naming Brett Sergeant as CEO. Short remains active in the business, focused on growth opportunities.

Arthur Laundy thanked Short for his partnership over the last decade, and is thrilled for his own family to take on the ownership of these venues and to see them grow further.

“I’ve been in this industry for over 60 years, and I am just so proud of what we have achieved as a family and we have been lucky to have some great partners along the way. Fraser’s partnership is one of those and the portfolio of hotels we have developed together are world class.

“It is a very exciting opportunity for us to welcome these hotels and their teams into our family. My family are fourth generation publicans and I am lucky enough to have all four of my children and their partners involved in the business, along with many of my grandchildren. The Laundy Hotels management team are a very talented team and they deliver a great product to all of our customers across NSW and Queensland venues.”

Laundy also stressed that he would be eager to work with Short again in the future.

“We have enjoyed a great relationship with Fraser for the past 10 years and would be excited to do things in the future again if the opportunity arose. However signing this deal gives myself and my kids a great platform to continue to grow Laundy Hotels as a family-friendly hotel group of the future.”