Billionaire pub baron Justin Hemmes to extend his hospitality empire as he looks to refinance in $500million deal with Australia’s banks – so could your local be swallowed up next?
- Justin Hemmes approached country’s biggest banks for $500 million refinance
- Sources familiar with plans say it is largest refinance ever pitched by Merivale
- Refinancing would allow Mr Hemmes to expand his massive hospitality empire
- Merivale owns 70 venues across Sydney is Hemmes family is worth $1.02billion
Billionaire Justin Hemmes has approached the country’s biggest banks for a $500 million refinance as he looks to expand his hospitality empire.
Sources familiar with the plans say it is the biggest ever refinance pitched by Merivale.
It is understood no advisors have been formally appointed to the deal and talks are ongoing between the bank and Merivale to decide which of its properties will be put up for security, Financial Review reported.
The refinancing would allow Mr Hemmes to snap up new pubs and restaurants, particularly during a time when there was high turnover because of Covid-19.
Mr Hemmes has made it his business to expand the Merivale portfolio and breathe new life into venues across Sydney over the past few years.
He bought the Beresford Hotel in Surry Hills in 2010, Queen Victoria Hotel in Enmore in 2015 and Bondi’s Royal Hotel in 2017.
Billionaire Justin Hemmes (pictured, with partner Madeline Holtznagel, 24) has approached the country’s biggest banks for a $500 million refinance as he looks to expand his hospitality empire
The refinancing would allow Mr Hemmes to snap up new pubs and restaurants, particularly during a time when there was high turnover
This year has been particularly hard on the hospitality industry with many venues forced to close because of Covid-19.
Data from IBISWorld shows revenue fell by nearly 20 per cent in restaurants, pubs and nightclubs in the 2020 financial year.
The revenue is not expected to recover until June 2021.
Mr Hemmes attempted to keep some revenue pumping into his businesses and introduced ‘Merivale at Home’.
This allowed his restaurants to deliver its gourmet food and expensive wines to customers at home.
Though it is unlikely to have fully made up for the loss from its closed venues.
Merivale owns more than 70 venues across Sydney and includes the well-known nightclub Ivy and Coogee Pavilion Precinct.
The Hemmes family is currently worth $1.06billion and it was recently revealed Mr Hemmes had bought a $7.5 million mansion for his ex Kate Fowler.
Merivale owns more than 70 venues across Sydney and includes the well-known nightclub Ivy (pictured) and Coogee Pavilion Precinct
Coogee Pavilion is just one of the more than 70 venues that are owned by Merivale across Sydney
Pictured: Kate Fowler and Justin Hemmes arrive at the GQ Men of the Year Awards 2016. The couple split in 2018
Mr Hemmes reportedly bought the Dover Heights cliffside mansion for the model – which is less than a 10-minute drive from his $60million Vaucluse residence.
The couple – who share two young daughters together – split in 2018 after three years of dating.
But the gift came with a caveat, which limits what Ms Fowler is allowed to do with the luxury home.
She is unable to sell the four-bedroom house without Mr Hemmes’ permission and cannot alter the property’s boundaries.
Ms Fowler is not allowed to remove Mr Hemmes’ ‘interest’ in the house or create a situation where another person could claim legal ownership by living there for 12 years.
Mr Hemmes is now in a relationship with model and 24-year-old Madeline Holtznagel.
The pair sparked romance rumours in August and were pictured for the first time together at the Melbourne Cup at the start of November.
Mr Hemmes is now in a relationship with model and 24-year-old Madeline Holtznagel (pictured)
Mr Hemmes and Ms Holtznagel sparked romance rumours in August and have tried to keep their relationship under the radar