Businessmen and long-time mates Geoff Dixon and John Singleton's Australian Pub Fund has sold the Kinselas hotel at Sydney's busy Taylor's Square to long-time hoteliers, the Kospetas family's Universal Hotel Group.
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It is the sixth asset the Australian Pub Fund, run by former Qantas chief executive Mr Dixon, Mr Singleton and their silent partner, Mark Carnegie, has sold in as many months.
The combined sales have reaped the fund about $120 million and include the well-known Marlborough Hotel in Newtown, which was bought by Matt Moran and Bruce Solomon's Solotel Group for about $34 million.
No price was disclosed for Kinselas, which started operations in 1910, but market sources suggested it was about $23 million.
The Universal Hotel Group is the hospitality vehicle for the Kospetas family - a highly regarded, multi-generational family owned business headed by Jim Kospetas, with his sons Harris and Steven.
Universal Hotel Group also owns Sydney CBD's Civic Hotel, V Bar and recently opened Pitt Street Greek-themed bar and restaurant 1821.
Ray White's Asia-Pacific director of hotels, Andrew Jolliffe, advised on the Kinselas sale and said demand for pubs remained high. His group has about $100 million of "super A Grade" hotel assets currently under agreement nationally.
![Kinselas is the sixth asset Geoff Dixon and John Singleton's pub fund has sold in as many months.](http://web.archive.org./web/20170523032048im_/https://www.fairfaxstatic.com.au/content/dam/images/g/t/h/9/b/t/image.related.articleLeadwide.620x349.gwa545.png/1495429965734.jpg)
Reflecting the high demand, Mr Jolliffe sold the Tennyson Hotel in Mascot last year to Justin Hemmes' Merivale Group for $37 million, and the $40 million Coolibah Hotel in Sydney's western suburbs earlier this month for the Vlandis Group to another local family-run operator.
Ray White Hotels Australia returns to the auction arena later this month on May 31 with three hotels on the block, including the Hunter Valley's Belmore Hotel, and Wollongong's Unanderra Hotel.
![Kinselas, in Taylor Square, Sydney, sold for about $23 million.](http://web.archive.org./web/20170523032048im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/a/7/m/t/image.related.articleLeadwide.620x349.gwa545.png/1495482117477.jpg)
Mr Jolliffe said following the sale of Kinselas, the Australian Pub Fund had four hotels - the Unity Hall in Balmain and the Vic on the Park in Marrickville, Sydney, and the Stock Exchange and Elephant Arms in Brisbane.
"Over the past two years, and we fully expect beyond, the market has supported both on and off-market transactions, highlighting both a strength and depth in terms of prices achieved, and pedigree of participating parties," Mr Jolliffe said.
Australian Pub Fund director Matthew Beach said the sale of Kinselas was consistent with the fund's previously announced strategic objectives to sell the pubs at capitalisation rates "that reflect their market value".
"[It also illustrates] our desire to deal at market value with experienced buyers," Mr Beach said.
The other pubs Mr Dixon, Mr Singleton and Mr Carnegie have sold include the Toxteth pub to Mitchell Waugh's Public House Management Group for $21 million, the Peakhurst Inn for $22.5 million, the Bristol Arms for $19.5 million and the Como for about $5.5 million.
Over the past year, about $500 million of pubs have changed hands, both freehold and leasehold, including the ASX-listed Lantern Group.
JLL hotels and hospitality recently sold the Terrigal Hotel on the NSW central coast for $28 million to Gallagher Hotel Management, while CBRE is selling the leasehold of the Greenwood Hotel in North Sydney.