Two Western Sydney pubs sell for $45 million

Two south-western Sydney pubs were sold in off-market transactions last week, delivering the owners a combined $45 million.

The hotels were sold to private hoteliers who do not want to be identified.

The first was the Doonside Hotel, sold by Redcape for $21 million. The price was an 8.4 per cent yield.

The Doonside features public and lounge bars, a TAB, drive-through bottleshop, a gaming room with 26EGMs, beer garden, extensive car parking and 16 unused first floor ensuite accommodation rooms.

The sale is a major development for Redcape which has been on the acquisition trail for the last six months after it was acquired 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,” Redcape CEO, Dan Brady told The Shout.

Around the same time, local businessman Bill Hilton sold the freehold of the Quakers Inn for $24 million. The price represented an 8.5 per cent yield.

Hilton has owned the pub since 1991 after acquiring a stake in it from Nick Peters of Peters Meats, before eventually buying out Peters’ share of the hotel.

The Quakers Inn pub is located on a 6820 square meter block opposite Quakers Hill train station.

The hotel has all the amenities including public, lounge and bistro bars, a large bistro, bottleshop, a gaming room with 30 EGMs, entertainment facilities and a substantial carpark.

The hotels were sold by John Musca, national director of JLL Hotels & Hospitality.

Musca says the pubs were attractive offers for investors.

“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,” Musca told The Shout.

Leon Getler 14th May 2018.