Redcape sells two pubs to one operator
MA Financial-managed Redcape Hospitality has sold two Townsville pubs.
The Hermit Park Hotel and The Sun Hotel in Mundingburra collected a combined $37.5 million from Falvey Hotels, led by Peter and Kim Falvey.
It is the buyer’s maiden investment in the regional North Queensland city.
The group’s portfolio of six assets is predominantly located across Brisbane and Ipswich.
It also owns the Falvey Hotel Gatton, 35 kilometres east of Toowoomba.
MA Financial will tip proceeds to upgrading Redcape portfolio assets.
The deal comes two months since realestatesource.com.au reported Redcape paid Sam Arnaout’s Iris Capital $500m for seven Newcastle and Hunter Region venues.
Redcape also Iris two Revesby freehold going concerns – the Crown Hotel and Revesby Pacific Hotel – for $150m.
Townsville assets
MA Financial paid $22m for The Sun Hotel at 6 Ross River Road in July 2018, with the freehold real estate valued at $11.95m.
The vendor was veteran operator Peter Ryan, who had held the venue for 30 years (continues below).
The asset includes a bar, bistro and gaming room with 45 electronic gambling machine entitlements.
MA acquired the Hermit Park Hotel at 100 Charters Towers Road as part of its $677m platform takeover of Redcape in 2017.
Records show the freehold traded for $5.65m in 2017 and $3.3m in 2013.
In August, 2007, weeks before the Global Financial Crisis, it sold for $7.7m.
It has 40 EGMs.
“We have enjoyed our long and successful history with these pubs…however it is time to pass them on and use the capital elsewhere,” Redcape managing director, Chris Unger, said.
“They will be in great hands with the Falvey family and we wish them well,” he added.
JLL’s Tom Gleeson was the agent.
Also this week we are reporting Australian Venue Co bought the leasehold to two regional Queensland hotels.
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