Merivale owner Justin Hemmes seeks $500M funding

Billionaire hotelier, Justin Hemmes, is asking the banks and offshore lenders for around $500 million to grow his pubs and restaurants group Merivale.

The group is owned by the Hemmes family and operates across Sydney with more than 70 venues.

The Hemmes family has recently been valued at $1.06 billion.

According to sources, there had been debate between Merivale and potential lenders about what security would be offered up.

Usually, refinancing with properties offered as security would be straight forward.

Yet, as not all properties have been offered as security, the deal is far more complex.

This refinance had been referred to by sources as Merivale's biggest refinance to date and would set them up for more growth.

All this comes at a time when Merivale, along with other hotel and pub owners, have suffered tremendously due to lockdowns.

To offset its lockdown issues, The "Merivale at Home" range of DIY gourmet meals was introduced, however it would not have made up for the decline in revenue its bars and restaurants experienced.

Merivale has survived the pandemic to date and is now looking at further growth.  

The debt package is believed give it the room for new acquisition facilities, that would enable it to acquire up new pubs and properties, at a time when there could be considerable turnover in the industry.