Russell’s only pub on the market
THE only tavern in the historic Bay or Islands township of Russell – The Duke of Marlborough Tavern – is on the market.
The tavern business, lease and assets are being sold by negotiation through Bayleys Real Estate.
Bayleys business broker Chester Rendell says the asking price is $220,000 plus stock and GST.
The current owners want to concentrate on running the hotel on the waterfront, Rendell says. ‘‘There’s good prospects for somebody. There’s good potential for someone to take it to the next stage.’’
The pub was revamped about five years ago to create a venue with ‘‘Ponsonby Rd type flair and panache’’.
The owners, who are locals, had developed an extensive marketing calendar for popular concerts and events including the Country Rock Music Festival in May, the Jazz and Blues Music Festival and Hot Rod Show in August, the Birdman flying tournament in July and the Bay of Islands Walking Weekend in October.
‘‘Combined, these sponsored events and attractions bring in almost $170,000 in revenue for the business and show the value of being such a cornerstone of the community,’’ Rendell says.
Operating profit has grown by 82 per cent from the 2012/13 financial year compared to the just completed 2015 financial year.
The tavern has nine gaming machines and proceeds are fed back into Bay of Islands community groups, schools, sporting organisations.
It’s on a six-year lease expiring in October 2017, with two further two-year rights-ofrenewal for a final expiry of September 2021, and the opportunity for that term to be extended. The annual rent is
and $58,200 plus GST.
Last November a 5192 square metre chunk of commercial property – including the tavern – was put on the market with a total rateable value of $3.79 million by owner Terry Ewbank.
Ewbank bought the land between 1996 and 2003 to create a resort similar to one he had completed in Aspen, Colorado.
He planned to convert a Masonic lodge on the property into a function venue.
Rendell says the land didn’t sell and Ewbank was still the landlord.