CBRE has been appointed as the lead sales adviser for the sale of the Keystone Hospitality Group’s assets, with more than 120 enquiries generated throughout the expression of interest process.
Since being appointed as receivers last month, Morgan Kelly and Ryan Eagles of Ferrier Hodgson confirmed all 17 of Keystone’s venues have continued to operate, will remain open and will be offered to the market as going concerns.
The venues for sale include:
- Bungalow 8
- Cargo Bar
- Chophouse Perth and Sydney
- Kingsleys Brisbane and Woolloomooloo
- Manly Wine
- Sugarmill Hotel
- The Rook
- The Winery
- Jamie’s Italian Sydney, Perth, Canberra, Brisbane, Adelaide and Parramatta
Kelly said the sales process would be conducted as either a recapitalisation of the whole group, or a sale of one or more portfolios of assets.
The expression of interest process fielded enquires from more than 120 parties, with some looking at a group-level investment (which offers the synergies of an existing head office function including marketing, payroll and purchasing) and others interested in groups of properties and individual properties.
“We are conducting a focussed sale strategy, specifically targeting buyers with the balance sheet strength and operational depth to be able to manage these acquisitions,” Kelly said.
He added that the Jamie’s Italian franchise would remain grouped together and sold as one entity.
“The Sydney, Brisbane, Adelaide, Perth, Canberra and Parramatta Jamie’s Italian restaurants are some of the best performing Jamie’s Italian restaurants globally and offer a very attractive opportunity for the right partner. We will continue to work closely with the Jamie Oliver Restaurant Group with a view to identifying a new partner for their business in Australia,” Kelly said. “This may be part of a whole of enterprise sale or as a separate portfolio.”
The sale process will start with national advertising of the group’s assets. Non-binding expressions of interest will be required in order to develop a shortlist. Short-listed parties will then be invited to commence due diligence before submitting formal offers.
Formal bids are expected to be submitted and assessed in September, with the aim of reaching in-principle agreement with a buyer or buyers in late September 2016.
“We are seeking a result before the commencement of the busy summer trade,” Kelly said.