Sam Arnaout drops c$200m on large format pubs
Redcape has sold two large format, multi-revenue channelled hotels in Sydney’s west.
The Cabramatta Hotel in Cabramatta West and El Cortez at Canley Heights – about a kilometre away – found favour with Sam Arnaout’s Isis Capital following off-market campaigns.
The total value is speculated to be just under $200 million, sources say.
HTL Property’s Andrew Jolliffe and Dan Dragicevich were the agents.
The deals come a week since we reported MA Financial managed Redcape acquired three Brisbane pubs for a combined $66m, as part of plans to replenish its portfolio after a major sell-down last year.
Development upside
The El Cortez is the largest property – covering 9683 square metres at 337 Canley Vale Road, on the north west corner of Avoca.
Interestingly, this land is zoned Residential (story continues below).
Meanwhile the Cabramatta asset covers two sites, the biggest, 4308 sqm at 224 Railway Parade, on the south west corner of Cabramatta Rd West, diagonally adjacent to the suburb’s train station.
It and the other block are gazetted Commercial.
“While Iris Capital operates on a national hospitality and development footprint, large…suburban Sydney hotels remain very attractive to our company,” Mr Arnaout said.
“Primarily because, and as evidenced by the combined 17,000 sqm of commercial holding, the inherent capacity for the asset class to absorb approved development upside levers is largely unparalleled,” he added.
Redcape managing director, Chris Unger, said it will invest proceeds into other opportunities.
Canley Heights and Cabramatta are just over 30 kilometres from the CBD.
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