Bidders queue up for Bondi Icebergs

The Icebergs Dining Room and Bar at Sydney’s Bondi Beach.

Cult oceanfront eatery Bondi Icebergs has attracted local and international interest since its owner John Singleton put it on the market nearly a month ago.

Expressions of interest in the Bondi Icebergs dining room and bar, which is valued at about $15 million, close on Thursday.

Selling agent Andrew Jolliffe of Ray White Hotels says two thirds of the interest is from locals, with the remainder from offshore hospitality entities.

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“There’s lots of high-profile interest in it, mainly from individuals and they are typically high net worth people,” he says.

The restaurant and bar is presently operated by Maurice Terzini who is believed to be one of the parties interested in acquiring it. Terzini’s company holds a lease to Singleton until 2036, including options, and is paying about $850,000 a year in rent for the prime 675sqm restaurant and bar. Singleton has a lease over the property, built on crown land, until 2042.

Restaurateur Leon Fink, who runs Bennelong at the Opera House and Quay Restaurant in Sydney, is also understood to have lodged a bid.

But he would not be drawn yesterday.

“I will let you know in due course,” Fink says.

Senior pub sources say Icebergs would sell for more than $15 million if it were a freehold offering.

“However being a leasehold there are serious doubts anyone would pay $15 million for it and the banks won’t lend on it.

“It’s a lovely restaurant, but this is very different from freehold,” says the senior source.

Jolliffe says he expects to announce the winning bidder next week.

This article originally appeared on www.theaustralian.com.au/property.