Redcape has moved into the craft beer business with the purchase of the Australian Hotel and Brewery off Momento Hospitality.
The pub and craft beer brewery based in Sydney’s north-west were sold in an off-market transaction to the national pub group, brokered by John Musca of JLL Hotels & Hospitality. This is the second western Sydney pub acquisition announced by Redcape in as many days, with the group also purchasing the Vauxhall Inn in Granville for well in excess of $30 million.
Neither party involved in the sale would be drawn on the transaction price, but Musca noted that it is “the largest hotel sale to have occurred since we sold the Hurtsville Ritz in 2005 for $52 million, with this business having inimitable sector appeal and compelling organic catchment growth drivers.”
Redcape continues to target hotels in high-growth, high population areas. According to 2016 Census data the north-western Sydney corridor is forecast to grow by 47 per cent by 2036 to more than 250,000 residents.
As a large-format hotel with varied revenue streams, Australian Hotel and Brewery is in a prime position to capture that market. The hotel and brewery is set on a 1.3 hectare site adjacent to Bunnings Rouse Hill. The hotel has a 2500 sqm trading footprint which includes a large bistro, public and lounge bars, function space, gaming and wagering facilities, a beer garden, children’s play areas and extensive onsite parking. There are also DA approvals for activation of the street frontage and for extensive new beer gardens, which Redcape are expected to capitalise on.
Brewing business
The brewery is the other successful part of the business – it has won multiple awards for its craft beers, which are distributed nationally and internationally. Australian Brewery also has approvals to double its production capacity and establish on-site packaging and canning facilities.
While the Colosimo family will remain involved in the brewery business, Redcape will foster the growth of the brewery through its considerable resources, and will distribute the beers through its 30 pubs nationally.
“The Colosimo family have done an excellent job at building up this hotel and positioning it for long term growth,” commented Dan Brady, Redcape’s CEO.
”Anyone who has been to The Australian Hotel and Brewery will have first-hand experience of the personal touches evident across the vast range of food, drink and entertainment offered. This is a classic local pub that is integral to the social fabric of the community and we intend to ensure this continues. We look forward to being part of The Brewery’s ongoing success story and providing support to the team there so that they can continue to grow their creatively authentic craft beer brands.”
Musca commented on the highly unique transaction, which sees Redcape move into the craft beer business, stating that it was “exciting being the conduit for a hotel transaction with unique commercial brewing competencies that will deliver vertical integration opportunities to a leading national hospitality company.”
The Colosimo family have grown the brewery business over two decades, but CEO Marcello Colosimo said that Australian Brewery will flourish even more with Redcape’s investment in the business.
“Our family is very proud of the Australian Hotel and Brewery, it is has developed into a wonderful community asset that will continue to service the hills district under the guidance and care of Redcape.
“We are excited to maintain an interest in the Brewery and anticipate the beer to only improve with the resources and depth of Redcape’s distribution and skillset. The team we have built up will continue to innovate and produce great product for all our current customers both in the domestic and international markets.”
Colosimo told Australian Hotelier that while the sale had come with “mixed emotions”, the group had plenty of projects coming up, with its new pub The Governor set to open next week and two other venues to open next year.