Property king builds Kings Cross empire with a bourbon and beefsteak

The combined site of Sydney’s former iconic and infamous Bourbon and Beefsteak pub and Les Girls nightclub, which epitomised the grunge of the long ago Kings Cross red-light district, is to be turned into a $65 million upmarket hotel and apartment block.

It is part of the renaissance of the area that was once seen as the beating heart of the Sydney underground and where most people gravitated to for a late night/early morning drink, dance and other dubious activities.

Renders of the proposed mixed-use development at 18-32A Darlinghurst Road, Potts Point, by Iris Capital and designed by Tonkin Zulaikha Greer Architects and Panov Scott.Credit: Mogamma

Sam Arnaout’s Iris Capital bought the near 20,000-square-metre lot at 18-32A Darlinghurst Road, Potts Point (which includes the current Bourbon and the Empire hotels) six years ago, and after years of negotiation was last week given the green light for his project by the Central Sydney Planning Committee.

“This is a real pivotal project for Potts Point. And it is the continuation or the Renaissance for Potts point,” Mr Arnaout told The Sydney Morning Herald.

Founded in the 1960s, The Bourbon and Beefsteak and Les Girls cabaret show became well-known as the haunts for some of Sydney’s more colourful identities, including police, US sailors and politicians, as well as average punters.

Sporting stars also frequented the venue, with cricket champion Ricky Ponting notoriously getting a black eye outside the pub in 1999, earning him a three-match suspension from the Australian team.

Iris Capital has expanded into a hospitality and development group, and has paid record prices for pubs in recent years, including $65 million for the Steyne Hotel in Manly in 2019 and most recently $45 million for the Narwee pub in southern Sydney.

Mr Arnaout first lodged his plans to add on the apartments in late 2017, but they were withdrawn in 2018 due to public disapproval. Now, after more than four years, the masterplan will proceed.

“It’s been a slow burn but I think the result is exceptional. We’re now looking forward to bringing it to fruition,” he said.

“We are pretty excited about it and it’s all part of our diversification strategies. But right now it seems like every time we get a little bit of momentum, we get reminded how vulnerable we are with a shutdown.”

Aside from the existing revamped Bourbon pub and the possibility of the return of Les Girls as part of the Empire hotel — both which will hold 24-hour, seven-day-a-week licences — the project will offer a medical centre, retail tenancies, hotel accommodation, and 52 residential apartments.

Mr Arnaout said the design, by TZG Architects and Panov Scott Architects, includes consideration for the historic Bourbon building where the existing facade will be retained and conserved, while a missing part of it will be reconstructed and original arched openings will be reinstated.

As part of its development business, Iris has this week added to its portfolio the Niecon Tower and Niecon Plaza in Broadbeach on Queensland’s Gold Coast for $58.5 million.

Mr Arnaout said there are plans for towers of 28 and 35 storeys, with a retail hub running from Broadbeach Mall to Albert Ave and 12 office, with an end value of about $700 million.

Mr Arnaout also took the group in something of a new strategic direction in April owner of Lasseters Casino, in Alice Springs.

Iris continues its massive redevelopment of Newcastle’s East End, and its operations throughout the Hunter Valley and paid $180 million to buy 17 Ibis hotels from Accor Invest in late 2019.

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