Hotel Property Investments is paying $63.3 million for three east coast gaming venues.
In the priciest deal the group is picking up Mango Hill Tavern, 25 kilometres north of Brisbane, for $31.3m.
Rented to Queensland Venue Co – a partnership comprising Coles Group’s Spirit Hotels and Kohlberg Kravis Roberts’ Australian Venue Co – and Viva Energy, the hotel, service station and small retail centre at the south west corner of Anzac Avenue and Alpine Drive is trading on a 5.7 per cent yield.
Also in Queensland at Airlie Beach HPI spent $9.7m on Jubilee Tavern.
The sole occupier is AVC which is on a 20 year agreement; the deal reflects a 7.5pc return.
In Melbourne the landlord is outlaying $22.7m for a Reservoir complex comprising the Summerhill Hotel – backed by Francis Hotel Group – and Chemist Warehouse.
At 840 Plenty Rd this investment is trading on a seven per cent yield (story continues below).
HPI entered a trading halt this morning to raise $48m for the acquisitions – 20pc by Security Purchase Plan.
The Queensland properties are expected to settle by the end of the year and the Victorian one, the following quarter.
CBRE’s Scott Callow, Cushman & Wakefield’s Nick Spiro and HTL’s Glenn Price and Brent McCarthy introduced the purchaser.
Prior to these acquisitions, HPI derived 93pc of its income from pubs leased to QVH and Australian Leisure & Hospitality – which is 75pc owned by Woolworths.
The balance of its revenue was paid by a mix of retailers including 7-Eleven, Nando’s, Noodle Box, Subway and The Good Guys.
The landlord’s non-executive chairman is John Russell, ex-ALH and former chief executive officer of Redcape which today acquired Dulwich Hill’s Gladstone Hotel and two neighbouring retail assets leased as bottle shops, for $38m.