Redcape snares new growth corridor pub
Redcape is continuing to boost its portfolio after a surprise shedding in 2023.
The manager of the recently delisted MA Redcape Hotel Fund is, for that trust, paying about $15 million, sources say, for the Flagstaff Tavern in Brisbane’s outer south west.
Completed this year at 2-4 Gates Road, also known as 242 Homestead Drive, Flagstone, it contains indoor and outdoor bars, a dining room, sports bar, child play area.
A gaming room with 45 electronic gambling machines is able to trade until 4am (the rest of the venue must close at 2am).
HTL Property’s Glenn Price, Dan Dragicevich and Andrew Jolliffe brokered the off-market deal for Balmoral Hospitality Group which paid $1.54m for the 3975 square metre site, settling in 2019.
That seller was Peet, which is behind the $3.4 billion, 126 hectare Flagstone City housing estate, expected to contain 12,000 dwellings (1500 of which have been built) by 2050.
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Flagstone is about 50 kilometres south west of Brisbane’s CBD and 70km north west of Surfers Paradise (story continues below).
Gates Rd and Homestead Dve are key commercial streets; McDonald’s paid Peet $1.5m for a site, now a restaurant, in the precinct, in 2019, while two years ago, Coles sold the Flagstone Village shopping centre it co-anchors, for $26.4m (Coles paid Peet $5.3m for the 1.85ha block which made way for that mall, in 2016).
The Flagstone Tavern acquisition comes three months since Redcape bought three Brisbane pubs for $66m – a blended 11.5 per cent yield.
In 2023, the MA Financial managed group divested several Queensland and New South Wales venues, banking over $100m, and divested redemptions for nine months due to economic challenges facing venues.
“The acquisition…is a continuation of our strategy to expand our presence in key growth markets and to increase the fund’s distribution whilst providing long-term value for our investors,” Chris Unger, manager of the MA Redcape Hotel Fund, which was delisted in late 2021, said.
“Flagstone is a rapidly developing community and we see strong potential for the team to further integrate the venue into the fabric of the area as it grows,” he added.
More investments, particularly in south east Queensland, are mooted, according to the executive.
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