SHOGROUP ACQUIRES EIGHT DRAGONS CHINATOWN
In a prime spot next to the Adelaide market, the new Eight Dragons Chinatown is the only hotel located in Chinatown and is set for a multi-million dollar fit-out by famed designer Tony Donnelly.
Donnelly is charged with creating a CBD centrepiece for entertainment, sport viewing, and gaming. The renovation will include a brand-new public bar, kitchen and food concept, and 36-machine state-of-the-art 175sqm gaming room.
The 37-year leasehold is located directly beside the $400 million redevelopment of the Central Market and Chinatown precinct which is set to become a new social and commercial heart of Adelaide. Operating 18 hours a day over seven days a week, it will include a new residential tower, a new hotel, as well as 22,000sqm of office space. In total, there will be over 11,000sqm of retail space, a supermarket tenancy, 260 space car park, as well as an east/west link connecting Victoria Square directly to the Central Market and Chinatown – creating more than a thousand jobs during construction and catering to a projected 10 million people a year once complete.
The venture comes in the wake of Wynne’s successful sale of Pyrmont’s Dunkirk Hotel last year, following its renovation and mammoth revival. It represents one milestone in Shogroup’s strategy as it looks for further investments in NSW and SA with a focus on strategic locations and partnering with savvy, experienced operators.
“We see the market, and this asset class in particular, brimming with opportunity right now,” Wynne said. “We are actively on the lookout for opportunities where we can add value as a strategic partner and investor to hotel acquisitions. Our investment in Eight Dragons is exemplary of the type of impact we want to have – I believe this redevelopment will be a catalytic investment for Adelaide’s CBD, in particular for Chinatown and the surrounding market district.”
For John Upham, an industry stalwart, who has owned more than 60 pubs over the last five decades the partnership builds on his portfolio in the capital which consists of both freeholds and leaseholds. He has also experienced a run of activity including recently selling his Lorne Hotel, the Great Ocean Road gem, to Justin Hemmes’ Merivale for a reported $38 million. ”There would only be a handful of publicans across the country with his level of experience and insight. I have an enormous amount of respect for John”, added Wynne, “and I’m lucky to be able to call him a partner.”
Eight Dragons Chinatown is kicking off the construction immediately and is set to open its doors in June 2024.
