Noah’s Backpackers joins the list of Adgemis venues for sale
The former Noah’s Backpackers in Bondi Beach, the one venue bankrupt pub baron Jon Adgemis had desperately wanted to hang on to, has formally hit the market.
The former Noah’s Backpackers in Bondi Beach, the one venue bankrupt pub baron Jon Adgemis had wanted to hang on to, has formally hit the market.
Adgemis had bought the prominent Campbell Pde corner site, now dilapidated and covered in graffiti, for $68m in 2022.
The former KPMG dealmaker, who has $1.8bn in debts, had grand plans for the property, changing its name to the South Bondi Hotel and winning council approval for a revamp that included a rooftop bar overlooking the beach.
But now receivers McGrath Nicol have listed that site, along with the already refurbished Hotel Diplomat in Potts Point that cost Adgemis’s Public Hospitality Group $16.5m in 2022, for sale via agents HTL Property in conjunction with Colliers.
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High-profile bankrupt businessman Jon Adgemis in Darlinghurst. Picture: Liam Mendes / The Australian
Noah’s Backpackers is up for sale.
It follows last week’s forced mortgagee-in-possession sale of the Rose Bay investment home of Adgemis’s family, which sold for $12m after two months on the market.
And lender Deutsche Bank took over three other of his venues in September, including The Empire Hotel in Annandale, The Exchange in Balmain, and Claridge House in Darlinghurst.
Announcing the sale of the Bondi Beach site and the Hotel Diplomat in Potts Point, Matthew Meynell of Colliers said: “We’re delighted to bring two exceptional assets to market, each offering unique opportunities to Sydney’s most sought after suburbs.”
He described the former backpackers as: “a truly iconic beachfront property located at Sydney’s most famous beach.”
Noah’s Backpackers in Bondi Beach. Picture Rohan Kelly
He added it was “a rare blank canvas and the opportunity to transform the building into a landmark that defies coastal living”.
The former 260-bed hostel is on an 866 sqm block with views out to Bondi Beach and comes with plans to develop 53 accommodation rooms and multiple bar areas.
Of the Diplomat Hotel, he said it was “perfectly positioned to benefit from the area’s strong population growth and vibrant urban culture”.
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Hotel Diplomat is also now officially on the market.
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He said it was “surrounded by a thriving mix of restaurants, bars, and entertainment, presenting a compelling opportunity for investors to capitalise on one of Sydney’s most dynamic precincts”.
Andrew Jackson, National Director of HTL Property’s Accommodation business, advised that the hotels were available separately, or in one line.
He expects strong interest for both properties.
“South Bondi Hotel is a rare opportunity to create an iconic and world class destination in the heart of one of the country’s most in demand entertainment precincts,” Jackson advised.
Other Adgemis pubs now up for sale include The Clifton Hotel in Kew in Melbourne’s east worth about $8m.
The Kurrajong Hotel in Erskineville sold for about $20m in September.
And other Sydney venues, Oxford House, The Norfolk, The Strand, The Exchange and Camelia Grove Hotel have also had receivers or administrators appointed.
Adgemis had set up Public Hospitality in 2021 and there were 22 venues before it collapsed.
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