Redcape, Patrick Gallagher negotiate hotel double-deal
Redcape has sold Patrick Gallagher Fairfield’s Crescent Hotel – where over 90 per cent of income is derived from electronic gambling machines – for $47.5 million.
In an unusual double-deal, the recently delisted hospitality fund manager is also paying Mr Gallagher’s private Gallagher Hotel Group c$22.5m for the leasehold of Pitt Street’s Criterion Hotel.
JLL’s John Musca and Ben McDonald were the agents; they said the transaction suited both company’s present portfolio aspirations.
“The fund is in a position to capitalise on opportunities to recycle assets and further enhance the portfolio,” Redcape managing director, Chris Unger, added.
“This deal is a testament to that and we look forward to building on the great business that Patrick and Angela Gallagher have built at The Criterion and equally wish them much success at the Crescent Hotel,” according to the executive.
Redcape has in the past 18 months sold down several assets from an unfrozen fund including in New South Wales, the Mount Annan Hotel near Campbelltown, the Unanderra Hotel in Wollongong and Central Hotel in Shellharbour.
Crescent Hotel
Opposite Fairfield station, 31 kilometres west of Sydney’s CBD, the two storey Crescent Hotel includes a bistro, bottle shop and gaming room with TAB and 30 EGMs (story continues below).
Redcape is returning a profit – it paid $42.25m in 2017 just after a $2m renovation.
The deal comes 20 months since we reported the Gallaghers bought Lane Cove’s Longueville Hotel from the Campion family for $50m.
Its book also includes in Sydney, Chatswood’s Chelsea Hotel and Hunters Hill Hotel and, on the Central Coast, the Terrigal Hotel. In recent years it has also divested west Sydney assets including the Ryde Hotel for $37m and North Sydney’s Union, for $20m.
“Having owned and operated several venues in Sydney’s west throughout our group’s history we cannot wait to play a key role in providing heightened amenity and a sense of fun to the Fairfield community,” Mr Gallagher said.
Following the Crescent Hotel sale and Criterion purchase, Redcape controls over 30 venues worth a total c$1.35 billion.
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