Adelaide property developer George Kambitsis has snapped up historic city pub The Griffins at Hindmarsh Square for $8.55m.
Mr Kambitsis, who owns the RAA headquarters next door, said there were no immediate plans to develop the site, which has been home to a pub since the 1850s.
Hospitality operators Your Say Group will continue to run the hotel under a lease with its new landlord.
“It’s been there for a long time, it’s well known and I think it trade’s okay,” Mr Kambitsis said.
“I own the adjoining building, where the RAA is, and I just thought I’d buy my neighbour given it had come up for sale.
“It’s an investment … maybe for my children down the track there’ll be redevelopment but no plans in the immediate term.”
The locally heritage listed building occupies a 680sq m site that has a Capital City zoning allowing for development up to 53m.
A hotel has existed at the site since 1850, with the current building dating back to the 1880s.
Mr Kambitsis’ Kambitsis Group recently completed a major redevelopment of the former Internode building on Grenfell St – on the eastern side of The Griffins – which has become the new city headquarters for the RAA.
The RAA moved into the building in June after selling its former home at Mile End to the state government as part of the $15.4bn Torrens to Darlington project.
Mr Kambitsis has a long history in the development of office buildings across Adelaide, but he is increasingly moving into the residential market, with a 120-lot land division at O’Sullivan Beach and a $35m luxury apartment project in North Adelaide known as Walter.
He said construction would soon begin on the Walter project, which will feature 19 apartments across nine levels on Walter St, just off O’Connell St.
“We’re getting quite a lot of interest, a number of pre-sales, and we hope to get underway later this year or very early next,” he said.