Contracts were exchanged last Friday for the sale of the Hotel Australasia site with listing agent Glenn Brunette of Eden Realty confirming the sale on Tuesday.
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The purchaser is retail development company, Great Southern Developments Pty Ltd, who has already on-sold the 15 Poker Machine Entitlements (PMEs) for an estimated $900,000 to $1million. The PME’s are expected to be transferred out of the town.
Rodney Thompson, on behalf of the purchasers said: “The full redevelopment will include a large format supermarket, with a tenant/operator yet to be confirmed.
“The company (Great Southern Developments) backed by directors with years of retail development and retail operation experience, is looking forward to adding a new supermarket offer to the town, an offer like no other. The development is proposed to create many new jobs, retain additional spending in the town and add to the great coastal experience that is Eden,” Mr Thompson said.
It is understood the developers have a business relationship with Metcash who count the IGA flagship retail banner and Mitre 10 amongst their very successful business enterprises.
The developers are hoping such a large investment in the town will bolster Eden’s push for Port of Eden developments through the Regional Development Australia Funds (RDAF) round four submission, with the completed RDAF submission signed off by the Bega Valley Shire Council yesterday and submitted to the RDAF today.
The deceased estate Hotel Australasia was offered for sale at a public auction on March 23, 2012, after serving its last drinks on May 23, 2010.
Passed in as a going concern, negotiations continued over 12 months with a number of interested parties.
However Mr Brunette said it became clear through those negotiations that there would be no more beers pulled at the 105-year-old pub.
“There were several buyers interested but the stumbling block has been financial approval for the hotel as a going concern.
“It was a major issue that it had ceased trading over two years ago; there were no current trading figures.
“In the current credit crunch it’s been extremely hard to get finance approval for an operation like that,” he said.
“It was all compounded by the substantial amount of work required to meet current health and building regulations.”
Mr Brunette is thrilled with the outcome of the sale not only for his business but also for the town.
“This is a premier site, strategically positioned between the car park and the main street.
“To have a modern supermarket facility in the centre of town as an anchor tenant for the township will be very beneficial for the shops and help keep the trading hub of the shopping centre.”
“The development is complementary to the existing Control Plan 40 for the main street.”
The developers are looking to meet with council staff shortly to get that process underway.
“Given the dilapidated state of the existing premises, an initial design and concept meeting is expected with council staff shortly following settlement to get the project rolling as quickly as possible,” Rodney Thompson said.