Chris Morris, Sam Arnaout battle for Cairns casino, hotel
Computershare co-founder Chris Morris has entered the race for the Reef Hotel Casino in Cairns.
The businessman has lobbed a $200 million-plus offer for the gambling venue and 128-room Pullman, following a four week due diligence.
In March, Sam Arnaout’s Iris Capital also made a $200m bid following DD.
The deal includes all units in Reef Casino Trust, backed by Casinos Austria and Accor, and all issued capital in both Casino Austria International (Cairns) Pty Ltd – the casino operator – and Accor, which runs the 1280 room Pullman.
It would also buy Reef Corporate Services Limited, the responsible entity.
RCT in strong position
In a statement, an RCSL spokesperson said the board is negotiating with Iris and Mr Morris.
“Discussions remain confidential and incomplete and there is no certainty [they] will lead to a transaction or, if a transaction is agreed, the price or…terms and conditions that may ultimately be achieved,” it added.
“Neither party is obliged or committed to pursue a proposed transaction,” according to the statement.
“Any transaction…would be subject to a number of conditions including relevant regulatory approvals.
RCSL confirmed both offers exceeded $200m.
“However, whilst price and value allocation remain under negotiation, RCSL also confirms that the value allocated to the units in RCT under both proposals is less than $200m,” the spokesperson added.
“While discussions are ongoing, investors are cautioned not to rely on any speculation regarding the negotiations, including any price or transaction terms that may be achieved or the allocation of total value between the units in RCT, the shares in CAIC and the shares in RCSL”.
The RCT market capitalisation is $146m.
Hospitality bigwigs battle for trophy asset
Melbourne based Mr Morris, with a speculated $1.4 billion net worth, also owns Queensland’s Mount Mulligan, Pelorus Island and Orpheus Island Lodge – the latter which rents for over $100,000 for a three day weekend.
The businessman also controls tourism enterprises and assets, amongst them, a yacht which rents for $400,000 a week.
His book includes the Ville Resort-Casino in Townsville – recently announcing plans to expand into a neighbouring tract.
Iris is a more significant investor in the hospitality sector based on portfolio value.
Four months ago the group outlaid $200m for two large format pubs in Sydney’s west.
In 2021 meanwhile the company acquried Alice Spring’s Lasseters complex, with a hotel component.
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