The focus is on “transforming underutilized assets in unique neighborhoods into vibrant and bespoke lifestyle and lodging experiences”.
The Lady Hampshire, which sits on a 6,000-square-foot lot at 91 Parramatta Road, is closed while PHG refurbishes it.
The hotel has a 24-hour operating license, nine slot machines, 12 overnight rooms and a public bar. There is also a mixed-use development permit up to 22 meters high.
The seller was the architect Michael Raad from Sydney.
Mr. Waislitz’s Thorney Group is a shareholder of PHG and a cornerstone of the debt that will be converted into stapled securities at the IPO. PHG is targeting a listing on the ASX in the second quarter of the year.
According to the investors’ memorandum, the initial portfolio will generate $60 million in sales and pre-tax income of $16.3 million this calendar year. By 2025, this is expected to grow to $131 million in sales and $48.3 million in profit.
PHG hopes to raise $22.6 million for its IPO to cover stamp duty costs.
Former CEO of Crown Sydney and Crown Melbourne, Peter Crinis, will lead the company while Mr Adgemis, whose JAGA group assembled the portfolio, will be appointed Executive Director.
The sale of Lady Hampshire was brokered by JLL’s Kate MacDonald and John Musca.
Ms MacDonald said JLL brokered 15 suburban hotel sales in less than 12 months.
“Private owners or lessees have eventually succumbed to operators’ ‘COVID fatigue’ and have attempted to divest their assets, while underlying real estate and gaming assets reflect an escalating trend,” she said.
Mr Musca said the limited supply of assets and core investment attributes would continue to fuel activity and “the interest rate moves discussed are unlikely to have a material impact on the sector’s capital appetite”.
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