The Sydney publican who scooped up the Empire Hotel in Goulburn last month has added the Southern Railway Hotel to his portfolio in the NSW regional city. It is understood the sale closed at just under $2.5 million. Established in 1872, the traditional pub has budget to family hotel rooms, a restaurant and amenities. HTL Property’s Blake Edwards, Xavier Plunkett and Sam Handy acted for vendor Jude Bourne.
November 25, 2019
The Kent Hotel in Newcastle’s Hamilton has been bought by local investors. The prominent corner hotel, which dates back to 1924, was put up for sale by Peter and Stephen Hunt, who have owned it since 2002. The price was not disclosed, but selling agents Andrew Jolliffe and Dan Dragicevich from HTL Property claimed it was record price for Newcastle. It came to market with price expectations above $25 million.
November 20, 2019
Prominent Sydney pub landlords the De Angelis family have taken its hotel spending spree to $65 million in just over a week after buying the Ingleburn Hotel for $29.25 million. The deal for the south-western Sydney gaming venue was struck by Bonnie Hotels group, which is owned by Marc and Meg DeAngelis, on a low yield of just 3.4 per cent. Last week, the De Angelis family swooped on the Raby Tavern and shopping centre, also in Sydney’s south-west, just two weeks into a sales campaign, paying about $35 million to secure it from long-time owners the Walker family. The family are among the most well-connected pub owners in Sydney –family matriarch Robyn De Angelis is the sister of Financial Review Rich Lister and fellow pub baron Arthur Laundy. Marc De Angelis and his brothers Philip and Peter are involved in the family’s hotel business. The De Angelis Hotel Group owns a large gaming pub portfolio including Uncle Bucks Hotel in Mount Druitt, which it bought from the Lantern Hotel Group for $25.3 million in 2016, as well as the Moorebank Hotel, Green Valley Hotel, Picton Hotel and Bath Arms Hotel. The Ingleburn Hotel, which stands opposite the train station, was put up for sale for the first time in 60 years by the Morgan family’s Irene Collins Nominees. JLL’s John Musca marketed the hotel, which sold before its November 14 auction. The Ingleburn Hotel has 27 gaming entitlements and permits, and consistently ranks among the top 80 gaming venues in NSW. The property covers 2239 square metres and is included in the proposed Ingleburn Precinct Plan as a future high-rise development site. “This is the third top 200 ranked hotel sold in Sydney in the past fortnight representing over $87 million of transactions, so the rapid consolidation continues in this rarefied asset class,” Mr Musca said Its sale follows hot on the heels of the ASX-listed Redcape Hotel Group selling the St George Hotel in Belmore in Sydney’s inner south-west to Michael Wiggins and Joanne Cassar for $47.1 million. Another south-west Sydney gaming pub, the Allawah Hotel, was acquired by Merivale Group’s Justin Hemmes for $34 million.
November 20, 2019
An Australian based property developer has purchased the Mon Komo Hotel, after it was put up for sale in June. Lewis Land Group, who also own the Belvedere Hotel at Woody Point, purchased the Redcliffe entertainment venue to bolster its portfolio. Mon Komo Hotel, at Marine Pde, Redcliffe, opened in 2011. Since then it has been operated by Kyko Group. Group director Bill Jenkings said they were selling to focus on expanding their office building portfolio. “It’s been a great journey and we’re really proud that Mon Komo has become one of the iconic Queensland hotels. We really look forward to coming back to relax and enjoy a cold beverage on Mon Komo’s stunning terrace” Mr Jenkings said. Lewis Land Group Head of Leisure Brad Jenkins said the buy was a significant milestone for the group.
November 11, 2019
One of Victoria’s oldest running hotels, Craig’s Royal Hotel in downtown Ballarat is on the market for the first time this century. Built in 1853, early in the gold rush that transformed Victoria, the hotel was described by American writer Mark Twain as “the pride of Ballarat”. Current owners John and Mary Finning have decided to sell the hotel they bought 20 years ago. The hotel has been central to significant historical events, including a royal assassination attempt. The Melbourne Racing Club was established on the premises and the 1855 Royal Commission into the Eureka Stockade was held there. It gained the Royal moniker in the 1860s when Queen Victoria’s son Prince Alfred visited Ballarat and stayed at the hotel. (After Prince Alfred left for Sydney, he was followed by Ballarat local Henry O’Farrell who attempted to assassinate him.) JLL agent Will Connolly is marketing the hotel. Expressions of interest open on Wednesday, after Cup Day and close on December 5. Early interest in the 73-room property is at more than $13 million. “The buyer will be purchasing a brand rather than a hotel – perhaps someone who is looking for a flagship property for their portfolio,” Mr Connolly said.
November 11, 2019
The Moelis Australia-controlled Redcape Hotel Group has made its first divestment since its lacklustre listing 11 months ago after selling the St George Hotel in Sydney’s south-west for $47.1 million. The 114-year-old gaming pub on 1752 square metres at 618 Canterbury Road, Belmore, was bought by Michael Wiggins and Joanne Cassar who recently sold their Oxford Hotel Drummoyne for $41.75 million to Rich Lister Arthur Laundy’s Laundy Group. The two-level pub sold off market at a 2.7 per cent premium to its book value through John Musca, of JLL Hotels & Hospitality. Following the sale, Redcape reaffirmed its full-year distributable earnings and distribution guidance of 9¢ per share and 8.75¢ per share respectively given in August. Chief executive Dan Brady said this reaffirmation was based on the group’s portfolio of 32 venues trading well for the year to date amid favourable industry conditions. He said the market presented “good acquisition opportunities” and the group would continue to look at “value accretive refurbishments and acquisitions”. Over the 2019 financial year, Redcape acquired six venues and sold one – the Belrose Hotel for $23 million, prior to floating, to the Bayfield Hotel Group at a 5.3 per cent premium to book value. It also bought the lease to the Mantle Group’s Pig N’ Whistle operation at Redbank Plains for $11.5 million, post the financial year, which it rebranded as the Eden Brewhouse Redbank Plains. Despite these favourable market conditions, the Redcape float has disappointed. Having floated at $1.13 a share on November 30 last year, shares were last trading at $1.08. Mr Brady said the sale of the St George Hotel was in line with its approach of actively managing the portfolio and maximising returns for securityholders. The sale of the St George will reduce the group’s gearing to 36 per cent from 38 per cent at June 30 – near the lower end of its 35-45 pre cent target range. Redcape delivered distributable earnings of $46.5 million or 8.8¢ per share, in line with pro-forma guidance for the 2019 financial year. Moelis Australia, which acquired the foundation Redcape portfolio of 25 pubs for $677 million in June 2017, is the largest shareholder (at 38.8 per cent) in the listed vehicle. It also wholly owns the group’s manager, Redcape Hotel Group Management. The divestment of the St George was the largest gaming-centric hotel sale in the country this year, according to JLL.
October 21, 2019
The Patinyotis family is selling the wedding reception venue they have owned for 40 years. Ascot House, a Victorian mansion, is on 4500 sq m of land in the heart of Ascot Vale, at 50 Fenton Street, with views across to the Moonee Valley Racecourse. The mansion was built for one of Melbourne’s earliest lord mayors, John Thomas Smith in 1860. Mr Smith, a city publican, was mayor seven times between 1851 and 1864. CBRE agents Nathan Mufale, David Minty and Leon Ma are selling the property by an international expressions of interest campaign and expect interest north of $8.5 million. It’s business as usual for the Ascot House business with a long settlement or leaseback arrangement expected to cover weddings booked into the future.
October 21, 2019
The owners of the Hotel Francis have more than doubled their money after selling the pub to Malaysian developer Aikbee Group. Aikbee Group, making its first foray into Australia with the acquisition, is understood to have paid $13.75 million for 282-287 Lonsdale Street. The three-storey art deco hotel, which has traded as Club Retro and the Niagra Hotel for several years, is on a 444 sq m site, just up the hill over Elizabeth Street. Colliers International agents David Sia, Daniel Wolman and Guy Wells brokered the deal. The vendors, Gobalakrishnan and Usha Subramaniam paid $5.75 million for the pub in 2011. It returns $542,788 a year in rent giving the deal a tight 3.9 per cent yield. But it’s obviously a development play rather than an investment – just two years remain on the lease. There haven’t been many pub deals in Melbourne this year. Last month Mr Wells and Oliver Hay sold the former Market Hotel in South Yarra for around $11 million on a 5 per cent yield. The hotel was bought in 2011 by Singapore-based hospitality group Tadcaster for $4.95 million and comprehensively gutted and revamped into the Emerson. The Emerson nightclub is operated by a Tadcaster related company, including Mark Hinkley and former footy players Leigh Colbert and Glenn Archer.
