Zagame famiy gaming hotels on the market for $300 million
The Zagame family’s hotel portfolio of six properties across Australia and Vanuatu is up for sale.
The price: approximately $300 million.
The offer is open now with international expressions of interest closing June 21.
The portfolio includes five freehold going-concern hotels in Victoria.
These hotels generate combined revenues in excess of $94 million and hold a total of 490 gaming machine entitlements.
The assets up for sale include Zagame’s Reservoir Hotel, Zagame’s Caulfield Club, Zagame’s Boronia Hotel, Zagame’s Ballarat Club, and Zagame’s Berwick Springs Hotel.
All up, the offer would allow potential buyers to enter the Victorian gaming sector with one of the largest gaming machine holdings and market share.
The portfolio also includes the 4-star Grand Hotel and Casino with its casino, VIP room and 74 luxury accommodation rooms across eight levels, as well as 16 gaming tables, 136 gaming machines and food-and-beverage facilities.
Victor Zagame, who passed away in late 2017 at the age of 77, built an empire after the Zagames’ first venue, the Albion Charles Hotel in 1971.
It is understood the family is selling up now because they don’t want to be associated with gaming.
Zagame Corporation director Victor Zagame Jnr, says the incoming purchaser would be buying a business with a model that had grown successfully over the last 50 years.
“Our venues are exceptionally well-presented, our staff are leaders in the industry, and our product is second to none,” Mr Zagame told Commercial Real Estate. “These successful businesses are well-placed to continue to deliver substantial growth.”
Selling agent Mark Wizel, CBRE national director, says he expects the portfolio will attract a lot of interest as they are located on large landholdings in central suburban locations.
“These sites offer future mixed-use development options, adding significantly to the potential upside available within a portfolio of quality and scale that very rarely comes to market,” Mr Wizel told Commercial Real Estate.
Leon Getler 9th May 2018
