Redcape continues north Queensland buys
Redcape has purchased the Rising Sun Hotel in Townsville off Sydney hotelier Peter Ryan.
The freehold acquisition was confirmed by Redcape CEO Dan Brady, who suggested that the group was not yet done looking for pubs to acquire, particularly on Australia’s eastern seaboard. The Rising Sun Hotel is the second north Queensland pub purchase for the group in just over six months.
”The Rising Sun Hotel is a quality asset that complements our portfolio of strategically located, largely freehold owned hotels. This accretive acquisition follows our recent successful purchase of the Andergrove Tavern in Mackay and is in line with our disciplined approach to acquiring quality assets that generate shareholder value.”
Having owned the Far North Queensland hotel for 30 years, Ryan sold the hotel to the national pub group through an off-market transaction, facilitated by Andrew Jolliffe of Ray White Hotels. Jolliffe would not be drawn on the price of the sale, but reports suggest it was in the vicinity of $20 million.
Freehold properties continue to be in demand, with Jolliffe stating that pub freeholds are currently attracting all sorts of investors, including outside of the industry.
“In the past week we have collaborated with industry veterans, listed vehicles and private investment houses to co-ordinate over $100 million worth of freehold hospitality transactions across the nation.
“The Rising Sun transaction in Townsville, on behalf of Peter Ryan, was an example of matching the chronological needs of a client with those of a very professional growth vehicle in the form of Redcape.”
As prices remain extremely competitive in New South Wales, Jolliffe suggested that Victoria and Queensland are the markets that investors are now beginning to focus on.
“Our Queensland office sold the Acacia Ridge Hotel in Brisbane recently for in excess of $26 million, and the sale of the Rising Sun in Townsville reflects a very active time in the region, with Delaware North, the Australia Venue Company and many other private investors also deeply engaged by the currency of opportunity.”
A recent market assessment from CBRE Hotels also suggested that north Queensland regions are becoming increasingly popular with publicans.