Sam Arnaout banks $500m for NSW hotel portfolio
MA Financial-backed Redcape Hospitality has struck Australia’s largest freehold going-concern hotel deal, acquiring a portfolio of nine New South Wales hospitality assets from Sam Arnaout’s Iris Capital for nearly $500 million.
The transaction includes six Hunter region pubs, the 104-room QT Newcastle (pictured, top) and two Sydney hotels.
The other assets are permit-ready development sites – the Gunyah Hotel, approved for 144 apartments and the Sydney Junction Hotel where 272 units were planned.
The sale ends Iris Capital’s decade-long investment across much of the Hunter, where the group redeveloped several landmark hotels and delivered QT Newcastle as part of the revitalisation of Newcastle’s East End.
“The sale enables Iris Capital to redeploy significant capital into our next generation of mixed-use developments and strategic acquisitions across Australia,” Iris Capital founder Sam Arnaout said.
Proceeds are expected to be recycled into Iris Capital’s development pipeline and Sydney holdings, including St Ives Shopping Village and the planned redevelopment of the Revesby Pacific site.
MA boosts portfolio
The MA portfolio comprises Argenton Hotel and Edgeworth Tavern at Argenton, Hotel Elermore at Elermore Vale, Gunyah Hotel at Belmont, Pedens Hotel at Cessnock, QT Newcastle and its sports bar in Newcastle’s East End, Sydney Junction Hotel at Hamilton, Revesby Pacific Hotel and Crown Hotel Revesby.
“We’re excited about these pubs – they’re diversified, resilient, and underpinned by material real estate holdings,” managing director Chris Unger said (continues below).
“This transaction continues our strategy to diversify our portfolio through long term growth opportunities, boosting its resilience and outlook as a result,” he added.
The deal comes a month since realestatesource.com.au reported Redcape bought Woolloomooloo’s Frisco Hotel.
Sun Group was that seller.
In May Redcape snapped up The Entrance Social Club on the Central Coasts from the Thomas family.
That deal was worth $36m.
HTL Property was the marketing agency.
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