JLL Hotels crystalise $73m pub deal for Redcape
JLL Hotels & Hospitality Group has today confirmed $73m in pub sales for leading hospitality group Redcape as unsatiated capital seeks greater exposure to the alternative asset investment market.
The off-market transactions were brokered by JLL Executive Director, John Musca, Managing Director Ben McDonald and Senior Vice President, Kate MacDonald and includes the divestment of the Vauxhall Inn at Granville and the Wattle Grove Hotel in Wattle Grove (Liverpool) both in NSW.
With deal flow continuing to build momentum in the pub sector in 2024, savvy owners are capitalising on renewed interest in what is now widely regarded as one of the strongest operating real estate classes in the country.
The pubs have been acquired by two separate groups who both plan to enhance the respective assets via strategic repositioning and refurbishment. The purchaser of The Vauxhall Inn has been identified as Sydney-based Orion Hotel Group, headed up by Michael Wiggins, Nick Savas and Myles Docker.
“We thank Redcape for a seamless and respectful transaction and look forward to the next incarnation of the Vauxhall under Orion Hotel Group ownership”, said Michael Wiggins group Partner.
In a positive sign for the NSW pub market, the purchaser of Wattle Grove Hotel has been identified as the Melbourne-based Francis Group headed up by second generation hotelier, Tom Francis. This is the second acquisition by the group in NSW having acquired Kings Head Tavern in South Hurstville earlier in the year also from Redcape, which adds to their growing stable of seven Victorian venues.
“As a family, we are excited to further continue our expansion into the Sydney hotel market with the acquisition of Wattle Grove Hotel. This marks a significant milestone for us as we continue to grow beyond our home state,” added Mr Francis.
When questioned on the transaction, JLL Hotels Managing Director, Ben McDonald noted, “The sector-specific appeal of the NSW pub market continues to draw competitive bidding from investors around the country. These transactions shine a light on the ongoing
appetite for assets with strong underlying trading fundamentals in locations underpinned by irrefutable growth narratives.
He added, “Our live market intelligence and intimate knowledge of underbidder capital points to a strong end of the year for the sector.”
Redcape Managing Director, Chris Unger added, “We wish both the Orion and Franics Groups the best and are confident that both venues will continue to thrive under their respective stewardship. For Redcape, this transaction continues the successful execution of our capital management strategy and rebalancing the portfolio.”
JLL Hotels & Hospitality Group, 11th September 2024
