Singleton pub selldown almost complete
The $300 million-plus pub fund operated by leading business figures Geoff Dixon, John Singleton and Mark Carnegie has been all but sold down with just three city and suburban hotels in Brisbane and Sydney plus an interest in a fourth pub remaining.
The Australian Pub Fund was formed eight years ago by flamboyant advertising man Mr Singleton, and his investor mates, former Qantas boss Mr Dixon and investment banker Mr Carnegie. At its peak the fund controlled about 13 pubs — although the trio had planned to buy up to 20 underperforming hotels in prime locations and overhaul them to increase value.
The next pub on the block is the Unity Hall Hotel in the inner-Sydney suburb of Balmain, which is expected to hit the market early in the New Year with price expectations of more than $20 million.
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The Australian Pub Fund picked up the Unity Hall Hotel for $10 million in 2011, during the worst slump in a decade. It was worth about $19.6 million at the top of the market.
At its peak The Australian Pub Fund was valued at more than $300m. Senior pub sources told The Australian the fund had already sold nine pubs, including Newtown’s landmark Marlborough Hotel for $35 million last year to business pair Bruce Solomon and Matt Moran after it was picked up for just $10 million.
Flamboyant ad man John Singleton. Picture: Mark Scott.
In late 2016, the trio of investors sold a further three pubs for $47 million, including the Peakhurst Inn and Como Hotel, both in Sydney’s southern suburbs, and the Bristol Arms Hotel in Sydney’s Sussex St.
The Australian Pub Fund retains The Elephant Arms Hotel in Brisbane’s Fortitude Valley and closer to the city’s CBD, The Stock Exchange Hotel.
It also retains a 25% interest in the Hotel Steyne in Sydney’s Manly, which is valued at more than $50 million. Other shareholders in the Steyne include Singleton in a private capacity, and businessman Robert Whyte.
Sources say The Australian Pub Fund has capitalised on the downturn in the market. “They bought them when the market was in all sorts of trouble, and decided to sell when the market hit its peak.”
Singleton and Dixon could not be reached for comment.
This article originally appeared on www.theaustralian.com.au/property.
