Developers and pub barons are expected to form a conga-line of interested buyers for the historic Hotel Bondi, which has been put up for sale, worth about $45 million.
But the real value lies in the development potential of the property, a stone’s throw from the beach on Campbell Parade.
The family of the late property and pub developer, Cyril Maloney, are selling the property after 44 years. It sits adjacent to the soon-to-be-completed Pacific Bondi Beach, a luxury apartment and hospitality development, and only metres from the recently opened Toga Group’s Boheme Bondi Beach luxury apartments and Adina Hotel complex.
Investec, which developed residential project The Beachhouse at Campbell Parade, recently sold the penthouse for more than $11 million to Sam Linz, the father of developer Allen Linz.
Jones Lang LaSalle's national director investment sales, hotels and hospitality group, John Musca, and James Aroney, JLL's national director, sales and investments, said the site was considered the ‘‘jewel’’ property of Campbell Parade.
‘‘Bondi is in the midst of a significant transformation,’’ Mr Musca said. ‘‘These properties rarely come to the market and will be keenly sought by a range of developers and investors."
Buyers of the property - a four-level hotel with 37 ensuite hotel rooms, bar, gaming room with 30 gaming machine entitlements, bottleshop and 12 car spaces - could include developers from overseas as well as pub specialists such as John Singelton, who owns the Steyne Hotel in Manly, the Short family, which recently updated the Watsons Bay Hotel, and Justin Hemmes, who is to re-open Coogee's former Beach Palace Hotel as the Coogee Pavillion.
Mr Aroney said the sale of the penthouse at neighbouring Pacific Bondi Beach for $21 million reflected a rate of $41,000 per square metres, further indicating that residential demand for the location ‘‘cannot be ignored’’.
‘‘The hotel will be offered with vacant possession providing hoteliers a much sought-after Bondi operating opportunity, however prospective short or long-term tenancy interest has already emerged, which could provide a passive, fixed income for developers and investors whilst they optimise and finalise a range of mixed-use conversion opportunities,’’ Mr Aroney said.
