Redcape’s pub portfolio a little overdear for Moelis

While due diligence by Moelis is believed to be afoot for a deal to buy Redcape’s pub portfolio, it is understood the vendors may need to drop the price if the sale is to proceed.

Apparently hedge fund owners Varde Partners and York Capital want $675 million for Redcape, but a price of only about $650m for the 2016 float hopeful is thought to be realistic for Moelis and its backers, following the advisory firm’s efforts to source funds from investors for the portfolio of 26 pubs.

Former Sydney mayor and publican Nelson Meers is said to be contributing.

It is understood that a price for the deal is still to be agreed.

Redcape’s portfolio is under consideration at a time the ­appetite of private equity giant Blackstone is said to be growing for some of Australia’s most ­expensive commercial real estate assets.

Meanwhile, Stockland’s efforts to find investors for its retirement business via Macquarie Capital are understood to be proving challenging.

It is thought the company later played down the talk of a spin-off of the entire $1.1bn arm from its balance sheet into a separate wholesale fund amid fears that there would be a lack of appetite for an investment in all of the business, prompting reports that only half of the business was subject to the sell-off.

Source:  The Australian - 7th December 2015