Redcape divests three more pubs
MA Financial managed Redcape has sold three more hotels, realising a total of over $86 million.
In the priciest deal, Nicole De Angelis, the niece of pub veteran Arthur Laundy, and her husband, Brendan Hood, have snared the Mount Annan for over $51m, a result which could see out the year as the country’s biggest for an asset of this type.
The other two properties – the Eastern Creek Tavern and Unanderra Hotel – collected a total of more than $34.5m.
All traded over book value.
“Hotels continue to be a resilient asset class in today’s market and we are seeing trading dynamics improve access across our portfolio as pubs continue to be a popular choice for customers,” Redcape managing director, Chris Unger, said.
“The multi- faceted hotel occupies a strategic position within the continually developing retail precinct of Mount Annan, benefitting from both organic population growth and onsite premise upside opportunities,” he added.
The De Angelis family, with sibling, Peter, mother, Robyn, and her husband, Archie, control a portfolio of metropolitan pubs, amongst them, Liverpool’s Macquarie Tavern, which cost $43m in 2021, the Crown Hotel in Marrickville.
In the regions, their book includes Bowral Hotel and Picton Hotel.
Last December, it bought The Gunnedah, 75km west of Tamworth, for $8.5m.
Mount Annan is about 60 kilometres from Sydney’s CBD.
Eastern Creek Tavern
In a second deal, Redcape has sold the Eastern Creek Tavern to Tony Falcone.
The publican, via Falcone Hospitality, is paying over $20m.
HTL Property’s Andrew Jolliffe and Dan Dragicevich brokered both sales.
“Mount Annan Hotel represents an extremely rare opportunity to gain a large format trading footprint in a rapidly expanding corridor of south western Sydney,” Mr Jolliffe said.
“Traditional hotels, particularly those that are multi-departmental in terms of revenue attraction, enjoy a resiliency that serves as both a magnet for investor attention, and the basis upon which they can outperform in all manner of economic environments,” he added.
“Surrounding prominent venues at Gregory Hills and Narellan provide a blueprint for its future earnings profile from an already strong an established base,” according to Mr Dragicevich (story continues below).
Eastern Creek is 35 kms west of Sydney.
Unanderra Hotel
Meanwhile, brothers Bill and Mario Gravanis’ Oscars Hotels has paid $14.5 million or the Unanderra Hotel, six kilometres south of Wollongong.
On 4000 square metres in the town centre – offering long term development upside – the large format venue can trade until 3am.
Its weekly income exceeds $130,000 from 14 accommodation rooms, described by the agents as under-utilised, and a gaming room with 26 electronic gambling machine entitlements.
“Having facilitated the sale of the nearby Five Islands Hotel for Oscars in 2021, the group has been keen to replicate its success and explore opportunities in the area given its strong historical trading performance,” JLL’s John Musca, who brokered the off-market deal with Ben McDonald, said.
“Given the acquisition is earnings accretive for Oscars and their deep understanding of the local market, there was genuine excitement at the prospect of securing the asset from Redcape,” he added.
“We fully expect Oscars to seamlessly integrate the hotel into their current operations and look forward to seeing the business evolve in line with their investment and operational strategy,” according to the executive.
Oscars holds other Greater Illawarra assets.
Then there was one
The sales come four months since we reported MA Financial divesting three Queensland pubs: the Aspley Hotel and Shaftson, in Brisbane and The Grove Hotel in Mackay, and the Central Hotel in Shellharbour.
It has just another asset on the market – Mackay’s Shamrock Hotel, carrying c$30m price hopes.
With that gone, its portfolio of 28 venues will be worth c$1.24b.
In June, the manager made the surprise decision to freeze redemptions until December.
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