Silverstone Developments has bought the freehold of The Alliance Hotel

A developer has explained why he snapped up a historic inner-Brisbane pub, revealing his long-term plans for the well-known venue.

A local developer and investor has bought one of a Brisbane’s major Victorian era inner city pubs and aims to keep the beer flowing.

Silverstone Developments managing director Troy Daffy bought the freehold of the Alliance Hotel in Spring Hill for an undisclosed sum after a campaign that kicked off a year ago under instructions from receivers and managers.

Mr Daffy — who bought the nearby International Hotel in Spring Hill last year and earmarked it for a future medical centre — said he planned to hold the Alliance Hotel as a long-term investment.

“We really love the old building and think it is a great pub,” he said.

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At 320 Boundary Street, the three-level hotel was built in 1888 and was designed by architect John Beauchamp Nicholson, who also designed the Princess Theatre and the Norman Hotel at Woolloongabba.

It is currently leased by PT Hotels & Property Group Pty, which is owned by Peter and Nikki Cedergren.

The expressions of interest campaign was run by Ray White Commercial’s John Dwyer and HTL Property’s Glenn Price, Brent McCarthy and Andrew Jolliffe.

Mr Dwyer said the new owner will work with the operators to “preserve the heritage of the asset”.

The property has a public bar, bistro and kitchen on the ground level, chalet bar and function room on the lower level; and a function room and manager’s residence on the first floor.

Mr Price said the campaign generated strong interest across a wide spectrum of potential interstate and local purchasers.

“With an aggressive investment landscape operating prior to the advent of COVID-19, the ensuing business challenges further solidified interest in the sector as money returned to real property investments underpinned by strong fundamentals,” he said.

“The current cost of debt is attracting gentrified investors, private equity, family offices and corporate groups to expand portfolios given the compelling arbitrage delta which exists between debt and purchasing levels.”