Contracts exchanged for Keystone venues

Receivers for the Keystone Group have announced that contracts have been exchanged for the sale of six Sydney-based venues to Dixon Hospitality Group.

The venues included in the sale are:

• Bungalow 8
• Cargo Bar
• The Rook
• The Winery
• Manly Wine
• Kingsley’s Woolloomooloo

Whilst Keystone Group and the receivers remain in possession of the venues until completion, Dixon were made responsible for day to day operational management at the venues from 1 November, 2016.

The receivers, Dixon Hospitality and Keystone management will be working together over the next few weeks to ensure a smooth transition.

According to a statement issued by Ferrier Hodgson, it became apparent throughout the due diligence process that Chophouse Sydney is suited to an alternative buyer. The receivers are in negotiations with a preferred bidder for and expect to make an announcement soon.

“Selling these high quality venues to a well-established hospitality group is a great outcome for patrons and staff,” said receiver Morgan Kelly.

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.”

The receivers are continuing to negotiate with other interested parties in relation to the remaining venues, which includes the Jamie’s Italian group of restaurants.

The Keystone Group entered receivership in June, and listed Sydney’s infamous lockout laws together with debt from expansion as contributors to its demise.