Nelson Meers, Francis Venues swoop on Sydney hotels
Redcape has shed three more hotels banking a total c$136 million.
In the biggest deal, Sonnel Hospitality, a new arm of Nelson Meers Group, is paying a speculated $105m for the Australian Hotel & Brewery in Rouse Hill and Eastwood Hotel (image, top, Google Street View).
The other venue, South Hurstville’s Kings Head Tavern, is trading to Melbourne’s Francis Venues, formerly known as IPR Hotels, directed by father and son, Ian and Tom Francis.
The blended yield is between 7-7.5 per cent.
HTL Property’s Dan Dragicevich and Andrew Jolliffe were the agents.
Redemptions, high yielding opportunities
Controlled by ASX-listed MA Financial but delisted in late 2021, Redcape has in recent years divested over $300m in venues.
It also picked up a key asset – the Criterion Hotel leasehold in Sydney’s CBD – as part of a swap-deal, and at a high c15pc yield.
Proceeds from the latest sales will be used for redemptions and on other high returning assets (story continues below).
Redcape paid Momento $50m for the large format Australian Hotel & Brewery in 2018.
It acquired the Kings Head Tavern the year later for $23m.
Unfrozen redemptions
The sales come 12 month since MA announced a freeze to Redcape redemptions – which lasted until this April.
The June, 2024, distribution will be $2.30 per unit.
The manager is aiming for this in September too, possibly rising after by 10 cents.
Subscribe to our newsletter at the bottom of this page.
