Private property developer Virtical has swooped on the Republic hotel in Sydney’s city, outlaying $40 million for the four-storey prime corner location, in one the largest pubs deals so far this year.

The buyer is the former Core Asset Development led by managing director Mark Toma, which owns more than $500 million in completed projects, ranging from development projects in Eden on the NSW south coast and Newcastle West and the recent purchase of the Adelphi Hotel in Flinders Lane, Melbourne for $25 million.

Located on the corner of Pitt and Bridge Streets, the freehold pub was sold on behalf of a Singaporean Investment Trust, which acquired the asset in October 2017 from Patrick Ryan and family for a reported $35 million.

It was run in the interim by Fraser Short’s business and the new owners are intent on keeping it as a pub. There is development potential for the site which has the sought-after Taylors rooftop bar and the popular Republic Dining room.

Well-known pub barons the Ryan family bought the 228 square metre property in 1998 and in 2002 converted it into a pub.

The selling agents, JLL Hotels & Hospitality Group and Savills Australia & New Zealand described the sale as one of the most “significant pub” deals so far this year.

“The sale of the Republic Hotel demonstrates the continued demand of well trading pub assets that benefit from strong underlying real estate,” Nick Lower, state director, hotels at Savills Australia & New Zealand said.

There has been about $2.5 billion in pub transactions in the past year, with NSW contributing more than $1.8 billion of this figure.

This is due to a number of contributing factors, including the robust trading performance of hotels and the tightening of asset supply, as well as a diminishing supply of gaming machine entitlements.