Fortitude concludes pub portfolio sale
Fortitude Investment Partners, with brands including Aquila shoes, Birch & Waite mayonnaise and text book producer Origo Education, has sold the last of 11 Adelaide hotels put to the market in stages from mid-2021.
The total achieved for the assets, controlled by its GM Hotels arm, is $160 million – more than twice the $67m it outlaid from 2015.
Endeavour was one of the key buyers – snapping up the Tower Hotel at Magill and Beach Hotel Seaford while RD Jones Group snared the Christies Beach Hotel.
Harvest Hotels, meanwhile, picked up Brahma Lodge’s The Lodge Hotel last August – in what was its maiden South Australian deal.
The priciest property was the freehold going concern of Morphett Vale’s Emu Hotel which was acquired by Endeavour’s ALH in partnership with Charter Hall, also six months ago, for $32m – a state pub price record.
Alcohol, food and gambling
Fortitude acquired 10 of the hotels (all except Cavan’s historic Cross Keys Hotel) from Quadrant Private Equity eight years ago, renovating most of them and selling off surplus land.
The portfolio included leaseholds and freeholds (story continues below).
The businesses derive income from alcohol, food and gambling.
Fortitude partner and director Nick Dignam said, following settlement of the last properties in April, 2023, the group will have more than doubled its outlay
Unitholders were also paid out an annual distribution of over 10 per cent.
Directed by publican Greg Maitland, GM Hotels retains several assets, including in another trust: the Paradise Hotel, Pier Hotel, Republic Norwood, St Francis Winery (a pub), the Valley Inn and Whitehorse Inn. It plans to replenish its portfolio.
The disposal comes 14 months since Adrian and Leo Saturno, known locally as the ‘booze brothers’ offloaded eight SA pubs, marking their retirement from the industry after five decades.
Seven of those traded for $66.1m to ASX listed Hotel Property Investments which committed Australian Venue Co to run them for an initial 15 years.
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