Virtical accepts major discount for pub
Virtical has offloaded Sydney’s Republic hotel for a major loss on its outlay 13 months ago.
Until recently directed by Mark Toma, the group has accepted $32 million from the Thomas family which plans to occupy.
It paid Singapore’s SC Capital $41.8 million including GST last August, settling in September.
Virtical had also just bought Melbourne’s boutique Adelphi Hotel.
It was planning to bring that brand to the Republic – part of a plan for a 10 level extension, with 98 suites, now off the table.
Coincidentally the Adelphi on Flinders Lane was also recently relisted for sale.
Mr Toma is also appealing a NSW Supreme Court decision forcing him to proceed with a $61m purchase for adjoining Darlinghurst hotels – the Kinselas and Courthouse – struck with MA Financial last year. The company may also be overdue GST payments and staff entitlements, sources say.
In a sign of failing fortunes for the sector post COVID, that price was a $6m discount on what MA outlaid in two deals, sealed in November and December, 2020 (story continues below).
Failing fortunes in pub sector
Developed c1865, the Republic rises four floors on a 228 sqm site at 69-73 Pitt Street, on the south west corner of Bridge.
Licensed to trade until 5am, it includes a ground floor pub, upper storey dining and event spaces and a rooftop bar – all up with c750 sqm of lettable area. A gaming room has 28 electronic gambling machines.
Nonagenarian David “Taffy” Thomas head the buyer group, being reported by The Australian. The family also owns the Oaks Hotel in Neutral Bay.
Virtical also holds the Metropolitan Hotel on George St, set to reopen in February after a refurbishment.
The Republic had also undergone some renovations in the past 12 months.
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