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Lakes Hotel Gardeners Road Rosebery

Our family company had been operating hotels in New South Wales on brewery leases. In 1982 Random Breadth Testing was introduced in New South Wales and the Neville Wran Premier of New South Wales told the hotel industry that they would be allowed to have poker machines in pubs to offset the revenue lost by the introduction of RBT.

The prices of hotels fell as RBT cut into revenues, and we saw this as an opportunity to buy a tired but solid hotel at a reasonable yield.
However commercial interest rates were very high, and credit was tight. Our bankers suggested that because it was the first time we were buying a freehold property that the associated risk meant that we could only have funds at 20% p.a. interest.
We managed to secure a line of credit from a non banking institution at 15% p.a (around 2.5% over the home loan rate) to purchase the Lakes Hotel.

The hotel had a public bar, lounge bar, restaurant, bistro and beer garden. It had a large room for functions and accommodation on the upper floor. Having the owners exercise hands on management at every control point was change that the staff took a little time to get used to.

In difficult trading conditions we improved the turnover significantly. We introduced a TAB and poker machines, upgraded the bistro and re-introduced the social and golf clubs for patrons.
By 1987 credit was freed up and buyers were prepared to pay multiples based on low yields. We sold all our projects in the early part of 1987 and kept our funds in cash

Lakes Hotel Gardeners Road Rosebery

Our family company had been operating hotels in New South Wales on brewery leases. In 1982 Random Breadth Testing was introduced in New South Wales and the Neville Wran Premier of New South Wales told the hotel industry that they would be allowed to have… Read more

47 Wentworth Avenue

Our accounting practice was leasing premises in York Street and we were faced with a steep rent review. We decided to look for premises to relocate the accounting practice to. 47 Wentworth Avenue was a 4 storey warehouse and office building occupying a small… Read more

Hampshire Hotel Camperdown

We realised early in 1987 that asset values were very high and the yields on which you could sell assets was too low. We sold both the Lakes Hotel and Wentworth Avenue by the middle of 1987 and kept our funds in cash. We went overseas for 3 months to come… Read more

Airport Lodge Botany

We had cash at our disposal it was time to invest again in underpriced assets. We recognised the need for budget accommodation near Sydney Airport. The sites we were offered carried too much risk in terms of financial commitment. Having purchased the… Read more

Lavington Lodge Albury

After we sold the Hampshire Hotel and the Airport Lodge, we had a brief stint of renovating properties in Queensland. We acquired a 32 perch block with an old weatherboard house, and subdivided the land into two 16 perch blocks. Then we moved the existing… Read more

Lavington Gardens

We had a land bank adjacent to the Lavington Lodge Aged Care facility that we had built, and we obtained a DA from Albury Council to build 20 two bedroom retirement homes on these sites. These were to be built in 4 stages of 5 houses a stage. We marketed the… Read more