Engadine Tavern sold for $31M following development approval

Engadine Tavern has been sold for $31 million, which is more than $8 million higher than the price paid when it last changed hands in 2018.

The 39 per cent capital gain follows development approval for an apartment block containing 64 units on the site of the hotel's car park.

An unidentified local developer and Queensland investor are believed to have joined in buying the property, which comprises three parcels of land.

White and Partners, who developed the Union Place apartments and hotel at Jannali, bought Engadine Tavern in July 2018 for $22.3 million from the Liddy family, who had owned the hotel for 39 years.

White and Partners not only gained development approval for the apartments project on the rear car park, but also negotiated a land swap with Sutherland Shire Council, providing a cleaner shape for the development while expanding the size of Engadine Park.

Development approval was given for one studio, 18 one-bedroom, 38 two-bedroom and seven three-bedroom units.

Following DA approval in 2020, the car park site was placed on the market through Ray White Commercial.

However, specialist pub broker firm HTL Property negotiated the sale of the entire site, including the car park, tavern and a building housing a Japanese restaurant.

The sale was managed by HTL Property's Dan Dragicevich, Andrew Jolliffe and Sam Handy.

"There's simply not many pubs that exhibit the unique upside levers the Engadine Tavern does" said HTL Property national pubs director Dan Dragicevich.

"A compelling, large-scale all-round trading proposition, in concert with a ready-to-build mixed use development approval; meant a competitive bidding process ensued and was timed to take advantage of the year end market rush" he said.

"The successful purchaser is fundamentally a new entrant to the asset class, but not one that is new to large format high quality property development..."

When just the tavern's car park was offered for sale in 2020, Ray White Commercial's Jeff Moxham said it had been identified as under-utilised land.

"The vendors, not being core developers / builders, are seeking expressions of interest to sell the site to a new owner to deliver the vision," he said.

"Having an existing and recent history of working with the Sutherland Shire Council as part of the successful redevelopment of the former [Jannali Inn], their vision was to re-purpose the car park and create a landmark development opportunity in the heart of the town centre."