Two south-western Sydney pubs were sold in off-market transactions last week, netting over $20 million each for their respective owners.
The Doonside Hotel was sold by Redcape for $21 million, representing an 8.4 per cent yield. The hotel offering comprises public and lounge bars, a TAB, drive-through bottleshop, a gaming room with 26 EGMs, beer garden, extensive car parking and 16 unused first floor ensuite accommodation rooms.
It is a surprise move from Redcape, who have been particularly acquisitive in the last six months, since being purchased by Moelis Australia in mid-2017.
“As Redcape continues to grow, it is important that we are disciplined in the way we utilise our capital. With numerous capital-intensive projects currently underway, and recent acquisitions capable of above market growth, the divestment of the Doonside Hotel supports this strategy,” explained Redcape CEO, Dan Brady.
Quakers Inn
Five kilometres away, local businessman Bill Hilton sold the freehold of the Quakers Inn for $24 million, reflecting an 8.5 per cent yield, after owning the pub since 1991. He originally bought the hotel with Nick Peters of Peters Meats, before eventually buying out Peters’ share of the hotel.
Quakers Inn sits on a 6820 sqm block opposite Quakers Hill train station, and includes public, lounge and bistro bars, a large bistro, bottleshop, a gaming room with 30 EGMs, entertainment facilities and a substantial carpark.
John Musca, national director of JLL Hotels & Hospitality, negotiated both sales. He suggested that “in what continues to be the most sought-after asset class in the country, both hotel profiles appear a natural and strategic fit for the incoming purchasers and the value that each will bring to the respective venues.”
Both hotels were sold to private hoteliers who did not want their identities disclosed.