The sprawling Sydney pub market has gained a new player in the shape of the newly-listed pub and pokie company Endeavour. In other words, the massive Endeavour group has just purchased a business for $40 million together with the property group Charter Hall.
It bought the Terrey Hills Tavern — a comfortable lounge bar and restaurant, but also a sports bar, beer garden, and live show venue.
The owner was Chris Feros, who ran the 1.6-hectare tavern for the last 16 years, while the sale negotiators were Dan Dragicevich, Andres Jolliffe, and Brent McCarthy, all employees of HTL Property, a notable commercial real estate firm.
The vital purchase was likely spearheaded by the Melbourne pub owner Bruce Mathieson, a major shareholder in the Endeavour group.
The group will take over 20 pokie machines and the leasehold, while Charter Hall will take over the freehold. The 20 poker machines will be added to Endeavour’s existing 12,000 gaming machines in 332 venues across Australia and New Zealand.
A spokesperson for the group has stated that they were all delighted to welcome Terrey Hills Tavern to their family and consider it a great addition to the company’s portfolio. It’s an addition to both their hotel and retail businesses.
The spokesperson has assured the local community that this purchase was an excellent fit for Endeavour and that the tavern would still provide exceptional service to all guests.
This effectively marks the first purchase in the last 15 years for ALH, the pub operator that merged with the Endeavour group in 2020. Until recently, Endeavour was part of Woolworths, but it split from Australia’s largest company last month.
This demerger was worth $10 billion, and through it, Bruce Mathieson got a 14.6% share of the group. What’s more, the demerger effectively made Endeavour the biggest pub operator and drinks retailer in the country.
As for Charter Hall, the company entered the pub market in Sydney with a massive bang back in 2014 when it teamed up with Hostplus, the Australian superannuation fund, to purchase $603 million worth of assets.
The entire Terrey Hills Tavern purchase is just the latest sale in the big and fast-expanding Sydney pub market. Even though the pandemic and subsequent government measures have closed many of the pubs for a while, there has been lots of activity in the market.
For instance, in the last month, around $300 million worth of local pubs have been purchased by big businesses, indicating that the market is bound for further improvement and change.