By Vanessa Cavasinni, editor Australian Hotelier
The receivers for Keystone, Ferrier Hodgson, have announced that contracts were exchanged Tuesday morning with Dixon Hospitality Group for six Keystone venues.
Dixon Hospitality will purchase Bungalow 8, Cargo Bar, The Rook, The Winery, Manly Wine and Kingsley’s Woolloomooloo. During due diligence, Dixon found that Chophouse was not suitable for their model, and did not exchange contracts for that venue.
Ferrier Hodgson will remain in possession of the venues until completion of the sale, however Dixon have taken over the operational management of the six Sydney venues as of this week.
Receiver Morgan Kelly was pleased to finalise the sale of these venues to the Dixon group.
“Selling these high quality venues to a well-established hospitality group is a great outcome for patrons and staff.”
CBRE Hotels National Director, Daniel Dragicevich added:
“The iconic nature of the Keystone venues is aligned with Dixon Hospitality’s existing stable of brands and this acquisition now gives them the necessary strategic platform to execute their well-publicised expansion plans.”
“This important mandate attracted international interest and involved transacting a very diverse mix of businesses across five capital cities. This outcome was achieved via the collective knowledge, expertise and national framework of CBRE’s hotels, retail leasing and insolvency teams.”
As reported last week, Dixon Hospitality Group, made a last-minute bid on the venues, after initially denying interest.
“This deal that will see us secure some great venues that are profitable, well regarded and that represent very good value for our shareholders,” said CEO Bruce Dixon.
Negotiations for the remaining Keystone venues continue, with Ferrier Hodgson in contact with interested parties. Further announcements are expected to be made shortly.
