THE owners of the former Kensington Theatre on Hunter Street are selling the building after spending more than $4million and eight years attempting to establish a nightclub.
The controversial nightclub was twice refused a liquor licence, but opened briefly in 2011 under a catering licence.
It prompted the NSW Government to change liquor laws to effectively prevent the venue from operating.
More recently, it has opened as a dry venue for teenagers.
The nightclub’s website said under-age events stopped in October while event options were reviewed.
The building has now been listed for sale by expression of interest through Knight Frank.
A property report says the sale will include the liquor licence, which was transferred to owner Wadalba Properties from the former Jolly Roger Nightspot.
While the licence is inactive, the property is still being touted as a potential nightclub.
Sale documents include a copy of a Newcastle Herald article detailing a drop in alcohol-related incidents at inner-city venues in 2012.
‘‘The Kensington nightclub is offered for sale,’’ the report said.
‘‘And with some lateral planning by an astute entrepreneur could possibly be one of Newcastle’s newest premium venues.’’
The owners previously told the Herald they spent more than $4million on the interior, which includes ‘‘DJ areas, dance floors, three refrigerated bars, cool rooms, post-mix system and a more relaxed lounge area’’.
The report said the property would suit a function centre, restaurant, wine or tapas bar, or a nightclub – with proper licensing.