T42 bar sale a sign of hot Hobart market

A landmark bar on Hobart’s waterfront has been sold for the first time.

After 22 years of ownership, the Tavern 42 Degrees South’s board has sold the freehold for an undisclosed figure.

Selling agent John Blacklow negotiated the sale to Steve Yannarakis from St Andrews Estate Agents and former Tasmanian David Hales.

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Yannarakis declined to discuss the purchase.

Blacklow, head of Knight Frank’s Tourism and Leisure Department, says the sale is one of a number of big hotel sales in Hobart.

“They paid market value for it,” Blacklow says.

“There is a lot on interest in Hobart’s hotels, the market is thriving.

“There’s a lot of people looking from interstate and overseas.

The T42 bar on Hobart’s waterfront has been sold for the first time in 22 years.

“We have two under contract, negotiating another big one and soon to offer another freehold.”

It is understood since settlement on October 5, Yannarakis and Hales have leased T42 for two years to the Pub Banc Group Pty Ltd, which operates venues including Post Street Social, Observatory nightclub, Cargo Bar, Jack Greene and the Telegraph Hotel. T42 now has new front of house staff with the same kitchen staff.

Gordon Allen, the former chairman of T42 Pty Ltd, which also owns Fish Frenzy, says the Elizabeth Street Pier is a great location and “stood the test of time”.

“It’s rare for a hospitality business to last so long and we feel proud to have employed so many in the industry and students over the years with casual and permanent jobs.

“Many have gone on to be successful business owners, finished their degrees working as lawyers, doctors and so on.

“It feels good to have been part of this journey.

“The board thank the Hobart public for being loyal supporters for 22 years in a market which has changed so much from when we opened with an influx of bars and a new generation socialising.

David Hales founded Betty’s Burgers & Concrete Co in Noosa. Picture: ERIC BLAICH

“All the best to the new operators.”

Hales told venue magazine he opened the Observatory nightclub in August 2007 and within 18 months he had three other hospitality lease – the Telegraph hotel came on the market, Ivory nightclub in September 2008, and Cargo Bar opened in January 2009. He then sold these businesses and moved to Noosa.

Hales is the founder of the Betty’s Burgers & Concrete Co, which he established in Noosa’s Hastings St in late 2014 and had since expanded to several outlets, predominantly in Queensland with the firm flagging more locations coming soon.

Hales last year bought Pat Rafters Noosa mansion, paying $15.2 million for the beachfront house. At the time the Courier Mail said Hales paid one of the highest prices the area has ever seen.

This article from The Mercury originally appeared as “The sale of the T42 bar on Hobart’s waterfront is a sign of a thriving market, says selling agent”.