Iris Capital acquires Alice Springs Casino for $105M
The owner of fully integrated development and hospitality group Iris Capital has recently purchased the Alice Springs Casino.
Sam Arnaout, and his company purchased it from Singapore-based Lasseters International Holdings for $105 million.
Iris owns a number of gaming pubs throughout Sydney and is also involved in major developments in Newcastle
The Group holds an apartment pipeline of more than 1000 units, however the acquisition of the Alice Springs Casino expands its gaming interests into other markets beyond pubs.
The Alice Springs casino is an international standard venue and features the latest tables and electronic games, four restaurants, four bars, a sports theatre, pool-side cafe, nightclub, health club, day spa and TAB.
The high profile casino featured in the movie The Adventures of Priscilla, Queen of the Desert.
Iris Capital’s hospitality portfolio also comprises of 17 Ibis hotels across Australia that were recently purchased for $180 million, in was the biggest hotel transaction in Australia in 2020.
This purchase made Iris Capital one of the largest hotel owners in Australia.
Lasseters is selling the casino in part due to the recent scrutiny faced by Crown Resorts.
“The gaming sector in Australia is highly regulated. Recent events on this sector and the issues with [the] other casino operator in Melbourne in relation to regulatory inquiry on alleged money laundering and possible links to organised crime may have an impact on financial institutions’ risk appetite in financing this sector,“ the Singaporean company said.
It also faces a looming tax bill.
“This an inherent risk and there is uncertainty around the possibility of an increase in gaming tax on the tax review date which may affect the long-term viability of the business,” the company said.
Lasseters was left with only the Adelaide casino after selling off all its loss making assets in Australia and said there was little economy of scale in only operating one remote casino.
“Our hotel and convention centre is still recovering from the aftermath of the pandemic and the sustainability of the record performance of the gaming sector remains uncertain,” Lasseters said.
Iris has been busy and has done well out of the pandemic.
Along with its Ibis purchase and the pending casino acquisition, Iris also acquired the East End precinct in Newcastle, where it is looking to rejuvenate the city centre.
Irit Jackson, 21st April 2021
