Hemmes may lose popular Coogee venue over rent stoush

Justin Hemmes is at risk of being evicted from his popular beachside watering hole the Coogee Pavilion for being two days late in paying $1.5 million in rent.

The Sydney Morning Herald reports that Mr Hemmes has been engaged in a stoush with David Kingston, the owner of the hotel, since earlier this year.

Mr Hemmes and Mr Kingston, the former managing director of investment bank Rothschild, entered into a business agreement in April last year for the pub mogul to buy the property for $37 million.

Under the agreement, Mr Kingston wanted Mr Hemmes to buy the hotel, previously known as the Coogee Beach Palace, by 2016.

Mr Hemmes offered up $5 million as a deposit and is paying $1.5 million a year in rent. Since sealing the deal, the Ivy owner has spent $12 million on renovating the property.

However, it appears the arrangement has since soured.

According to court documents sighted by Fairfax Media, Mr Kingston alleges the Merivale boss was two days late with rent and is undertaking "blatant and unauthorised works" on the property's rooftop bar.

Since the start of this year, Mr Kingston has served Mr Hemmes with a number of termination notices and is claiming to have never been informed about the extent of the renovations.

He has refused to give Mr Hemmes back his $5 million deposit.

Mr Hemmes is refuting the allegations and has launched proceedings in the Supreme Court for an injunction to prevent him being evicted.

The Merivale Group purchased the Coogee Hotel in April last year. The property joins the hospitality company's stable of Sydney-based pubs and restaurants that include Ivy, Establishment, est, Mr Wongs and Ms G's.