Redcape offload famed Minskys Hotel for $39m

JLL Hotels & Hospitality Group is delighted to announce the sale of Minskys Hotel and Commercial Suites on Sydney’s exclusive Lower North Shore for $39m.

JLL Hotels & Hospitality Group Managing Director John Musca, Senior Vice President Ben McDonald and JLL Metropolitan Sales & Investments Director, Gordon McFadyen steered the divestment process of behalf of MA Financial-backed Redcape - one of the hotel sector’s most respected operators and management groups.

Providing further evidence of the pub market’s insatiable appetite and cross-sector appeal, the competitive public sales campaign generated 65 enquiries from a wide-ranging domestic buyer pool seeking to capitalise on the opportunity to acquire the hotel and associated commercial floor space for the first time in nearly two decades.

Offering circa 3,344sqm of strata area across two distinct floors with separate bottle shop, 4am trading approval, 25 gaming machines and consistent weekly revenue generation in excess of $160,000, the sale attracted the interest of hotelier’s, private investors and property groups in equal measure. With a myriad of reconfiguration options, the underutilised first floor commercial space and bar areas were a key attraction for those seeking to unlock the full commercial and trading potential of the asset.

“The opportunity to seize an asset of such quality with obvious and significant value-add potential via repositioning and/or strategic sell down, fueled what was one of the most competitive campaigns we’ve managed in the last five years,” Mr McDonald said.

The Minskys Hotel sale adds weight to the significant list of hotel transactions for 2022 thus far and is JLL’s seventh sale in the last month alone following the landmark Pendle Inn Hotel transaction in Western Sydney, Lake Macquarie Tavern, Amble Inn Corindi Beach, New Ivanhoe Blackheath, Globe Hotel Deniliquin and Post Office Hotel Gulgong.

With JLL Hotels in final stages of negotiating over $250m in asset sales, the firm maintains their bullish outlook on market conditions with significant depth of capital still seeking adequate investment options in the hotel space.

JLL, 13^th May 2022