A $61 million sale of Kinselas Hotel and Courthouse Hotel has collapsed, with The Sydney Morning Herald newspaper reporting that the matter is now before the Supreme Court.
Private property developer Virtica agreed to buy the two Taylor Square pubs in September last year but failed to settle on the deal by its due date, resulting in the vendor, MA Financial, launching legal action to enforce the deal.
The matter is due to return to court this Friday.
The Herald reported Virtical’s John Palasty as saying that the company terminated the contract as the seller “was not providing the financial information needed to complete the transaction” and a site inspection revealed the properties were run down.
“As we have terminated the contract, there will obviously be no redevelopment of the sites by Virtical,” he said.
When the sale was made public in September, plans were announced to combine and revamp the venues to create a hospitality precinct.
Redcape Hotel Group, a subsidiary of MA Financial which operates the two Taylor Square pubs, declined to comment to the Herald on the site's future.
But in an affidavit tendered in court, the Herald reported Redcape director Christopher Unger as saying deteriorating market conditions since the September sale made city-fringe hotel developments less attractive to potential buyers.
You can read more on this story on The Sydney Morning Herald website.
Ben Grubb is the founder and editor of Gay Sydney News, an independent publication covering LGBTQIA+ news. A journalist with more than 15 years' experience, he has reported and edited for The Sydney Morning Herald, The Age, WAToday, Brisbane Times, The Australian Financial Review, News.com.au, ZDNet, TelecomTimes and iTnews, primarily on the topic of technology. He previously hosted The Informer, a queer current affairs program on Melbourne’s JOY 94.9 radio station, and contributes to LGBTQIA+ media including Stun Magazine. Ben has also appeared as a technology commentator on Channel Ten's The Project, ABC RN’s Download This Show and commercial radio stations 2UE, 2GB and 6PR. Contact Ben: [email protected]
