Noah’s goes to pub company as Bondi back on map

Noah’s Backpackers, 2-12 Campbell Pde, Bondi Beach. Picture: realcommercial.com.au/for-sale

Sydney’s iconic Bondi Beach has turned on its magic for the owners of Noah’s Backpackers who have sold their much-loved property which was expected to fetch about $70m. But what’s next for the famous venue?

In a winter surprise which has defied the chill that has descended over parts of the commercial property market, the site has been picked up by high-profile publican Jon Adgemis who has been assembling a network of properties under the PUBLIC Hospitality Group banner.

The group, now run by longtime Crown Resorts heavyweight Peter Crinis, has a speciality in accommodation and reworking under-utilised properties to bring out their highest value.

The PUBLIC venture had 15 venues before the Bondi Beach play and the purchase will help back its claims to becoming one of the country’s top lifestyle networks.

“It’s an important site given the iconic nature of Bondi Beach and the position of those buildings in that streetscape,” Mr Crinis said. “It is one of the most famous tourist destinations in the country and with that comes a lot of responsibility as operators and developers.”

Mr Crinis said the group would spend time engaging with stakeholders about how to best work up an iconic hospitality offering.

“We’re really excited about having the opportunity to potentially convert the property into one of the most special, boutique and iconic hotels, not only in Australia but around the world,” he said.

PUBLIC will initially trade the existing business and is already working up a scheme for a “cool backpackers” style of product.

The colourful facade of the property is likely to be retained as part of a redevelopment of the site. Picture: realcommercial.com.au/for-sale

PUBLIC will look at each element of the building and could work with other operators as it works up a long term masterplan for the site.

The eastern suburbs have seen a series of record-breaking sales in luxury projects at nearby Tamarama and in up-market Double Bay on Sydney Harbour and the buyer had to beat bids from apartment developers.

The area is already going through an extraordinary rerating, with North Bondi being transformed into a billionaires paradise with some buyers snapping up entire apartment blocks in order to convert them into luxury homes.

The Campbell Parade retail and hospitality strip has also come back to life in the wake of pandemic-related lockdowns and Bondi is once again drawing international tourists.

The Noah’s Backpackers hostel is at 2 Campbell Parade, just across the road from Bondi Beach, and has accommodated budget travellers looking for the full Bondi experience of surf, beach, bars, cafes and shopping.

Developers also chased the site for its international recognition and 1087sq m size. It includes a 260-bed backpackers, ground floor retail and adjoining apartment block, giving the buyer a blank canvas to develop.

The property’s colourful facade is likely to remain but an overhaul could change the face of the area as it is zoned for mixed-use and medium density, allowing for a higher-end offering.

The famous beach strip is already in for big changes as the heritage-listed Bondi Surf Bathers Life Saving Club will also be upgraded, with the beachside pavilion also undergoing $25m worth of works.

The sale was handled by the Colliers team of Miron Solomons, Matt Pontey and Henry Burke, in conjunction with Oxford Agency’s Daniel Marano and Ralph Garofano. They declined to comment.

The property wraps around the corner of Campbell Parade and overlooks the famous shoreline, and accommodation there could attract premium prices in an already hot segment of the market.