One of Sydney's pub icons is up for sale, with owners pointing to both lock-out laws and the lure of property developer dollars as reasons for putting the once-legendary Kings Cross nightspot The Bourbon on the block.
Both The Bourbon, still referred to by many by its original Bourbon and Beefsteak name, and adjoining former Sydney Swan Club are on the market, with any new owner having the ability to redevelop the site for apartments.
The current owner, C.inc Hotels' managing director Christopher Cheung, said the new lockout laws in the inner city had influenced his decision to sell the properties and focus on his other pubs, including the Coogee Bay Hotel and Cruise Bar at Circular Quay.
Founded in the 1960s, the Bourbon and Beefsteak became well-known as the haunt of some of Sydney's more colourful identities, including police, US sailors and politicians, as well as average punters. Sports stars also frequented the venue, with cricket champion Ricky Ponting notoriously getting black eye outside the pub in 1999, earning him a three-match suspension from the Australian team.
Mr Cheung's makeover aimed to take the pub back to its former glory after a long decline.
"There's no doubt that our vision to create a landmark, integrated hospitality facility at The Bourbon and Swans Club has been inhibited by recent legislation, but the number of approaches we've had from developers has made its sale a very compelling proposition," Mr Cheung said.
No price was disclosed but similar properties have reaped more than $30 million.
The sale comes at a time when the Kings Cross and Potts Point area is undergoing an evolution from late night bar scene to a "gentrified" residential enclave.
It's said to be one of the most densely populated areas in Sydney and a number of former pubs and bars have already been sold and converted into apartments.
Owners of those properties have also cited the influence of the new lockout laws and shifted their business interests away from central Sydney, with beachside venues proving popular.
For example, high-profile "bar czar" Justin Hemmes has bought into Coogee and the pub-owning Laundry and Short families have bought Northies at Cronulla and Mona Vale pubs.
Mr Cheung bought the Potts Point properties from the former ING Real Estate Entertainment Fund in 2010, at a time when storms in Sydney had caused the roof of the Swans club to collapse and subsequently close.
Mr Cheung spent about $10 million upgrading the ground floor of the Bourbon hotel, which boasts 30 gaming machines and hotel licence worth $4 million on its own.
It's thought the site could accommodate up to 70 apartments.
JLL hotels & hospitality group national director John Musca, who is advising on the sale, said demand for pub sites was running hot, "as evidenced by the recent keenly contested sale of Hotel Bondi".
He said Potts Point and Kings Cross had witnessed an amazing transformation in recent years with the City of Sydney's desire to see the area revitalised with new residential development evident in successful residential transformations of the former Mansions Hotel and Hamptons Hotels in Victoria Road.
In August this year the existing 200 room Mercure (Crest) Hotel on Darlinghurst Road also received approval for conversion to an 180 apartment and retail development. The Lido Hotel on Roslyn Street is also up for sale, with approval for 27 apartments and retail outlets.
