Investment bank Moelis buying Zagame pub portfolio for a speculated $270 million: sources

New York based investment bank Moelis is understood to be close to finalising an agreement worth a speculated $271 million for five Victorian pubs.

The properties – touted upon being listing in May as the single largest gaming portfolio to hit the Victorian market – were offered by the Zagame family, whose Zagame Corporation began in 1971 with the establishment of The Albion Charles Hotel, in the inner north Melbourne suburb of Northcote.

The marketing agents – CBRE’s Mark Wizel with Cropley Commercial’s Stephen Cropley and George Iliopulos – described the portfolio as “50 years in the making”.

With any disposal, the Zagame family is out of the gaming business.

The family, whose patriarch Victor Zagame died last October aged 77, still retains commercial properties, restaurants and hotels. Zagame Corporation is now directed by his sons, Robert Anthony and Victor Junior.

The five pub assets – freeholds which generate some $94 million per annum in revenue from 490 gaming machines – include:

Zagame’s Ballarat Club
Zagame’s Boronia Hotel
Zagame’s Berwick Springs Hotel
Zagame’s Caulfield Club
Zagame’s Reservoir Hotel

A deal to Moelis was first mooted in The Australian in August. The KKR-backed Australian Venue Co was also in the mix of prospective suitors, the outlet reported in this item.

Sources have recently suggested to realestatesource.com.au that an announcement about any deal may be made shortly.

The assets were offered individually or as a $300 million portfolio including a sixth offering – the Grand Hotel & Casino Resort in Vanuatu which offers 136 gaming machines and 16 gambling tables.

Advertising material used to promote one of the Zagame Corporation investments.

 

Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au

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