Bankrupt High-Flyer’s Kew Pub Is Back on the Market, Again

The latest twist in the saga of Jon Adgemis’ collapsed pub empire is a stark reminder that even the most seemingly solid business ventures can be vulnerable to catastrophic failure. The Clifton Hotel on Kew Junction, one of Adgemis’ Melbourne pubs, has resurfaced as a potential buyer’s paradise – again.

Adgemis’ downfall was staggering: 22 pubs, mostly in Sydney, valued at over $1.8 billion, and a reputation that was once synonymous with high-flying success. Yet, beneath the surface lay a complex web of debt, questionable business practices, and an almost complete lack of due diligence from investors and lenders.

The Clifton Hotel’s reappearance on the market is a poignant reminder that even properties deemed “safe” can be highly susceptible to economic downturns. The pub’s previous sale price of $6.8 million in July 2021 was already considered high for the area. With local laws allowing up to 12 levels at the junction – and plans drawn up for a seven-level hotel above it – a property developer may be the likeliest buyer.

The Vine Hotel in Collingwood, another Melbourne venue, remains empty despite being valued at $4.75 million when purchased by an Adgemis shell company just over a year ago. The fact that this property was deregistered in May raises serious questions about the management of these businesses and the oversight of investors.

The sale of BWP’s Sunbury Lifestyle Centre for $25.5 million highlights another trend: the increasing demand for large-format retail centers and mixed-use developments. This diversification in commercial property investment is gaining momentum as investors seek to mitigate risks associated with specific sectors.

Meanwhile, the former Kozminsky jewellery shop on Bourke Street has reappeared on the market, vacant once more after a series of failed plans for redevelopment. Its location next door to Cbus Property’s new tower featuring Chris Lucas-owned restaurants raises questions about the long-term viability of such projects and the impact of changing consumer preferences.

As investors continue to pour money into takeaway joints – with Nando’s in Cranbourne North selling for $5.84 million last week – it becomes increasingly clear that Australia’s commercial property market is facing a perfect storm of over-investment, speculation, and rising costs. The collapse of Adgemis’ empire serves as a cautionary tale: even the most seemingly stable businesses can be vulnerable to catastrophic failure.

The question remains: what’s next for these properties? Will they find new owners willing to take on the risks associated with them, or will they continue to languish on the market, waiting for someone – anyone – to take the plunge?