Redcape selling nine pubs and bottleshops

Redcape Hotel Group has listed for sale a portfolio of nine Queensland hotels and stand-alone Liquorland bottleshops as market conditions in the investment sector continue to strengthen.

CBRE Hotels in conjunction with Burgess Rawson are the exclusive selling agents for the Redcape-owned properties, with the sale program targeted to divest over $20 million worth of assets.

All but one of the properties is backed by long term leases to Liquorland Queensland, a subsidiary of Coles.

Redcape, which also recently listed Sydney pub Bristol Retro Arms for sale, will offer the Queensland assets individually at auction at Crown Casino, Melbourne on Wednesday 27th March, 2013.

CBRE Hotels director Joel Fisher said the strength of the Coles tenancy covenant combined with the improving sentiment in the hotel investment sector was expected to underpin significant interest in the sales campaign.

"We're expecting strong interest from passive investors, not just from Queensland but from right across the country, with all of the properties offering long lease terms and guaranteed future rental growth, well above inflation."

The individual hotel and bottle shop assets vary in value between $650,000 and $6 million with the three Liquorland bottleshops each expected to sell for under $1 million. 

Ant Hill Hotel, Mareeba

All are backed by initial long-term leases (most of which commenced in 2006) with options. Fisher said the lease terms included very favourable rent increases of four per cent annually and all properties boasted good underlying property values.

Three of the leading assets in the portfolio are the Coomera Lodge Hotel and Liquorland on the Gold Coast, the Mansfield Hotel and First Choice Liquor Barn in Townsville and the Palm Cove Tavern in Palm Cove.

Fisher said Townsville's Mansfield Hotel and First Choice Liquor Superstore was expected to attract particularly strong investor interest. The landmark property occupies a prime 6,075 square metre site - one of the largest hotel sites in Townsville.

Also up for auction are two Atherton Tablelands hotels, those being the Ant Hill Hotel at Mareeba and the Carrington Hotel at Atherton (leased to the Hedz Hotel Group), as well as the Commonwealth Hotel at Innisfail south of Cairns.

The three stand-alone Liquorland bottleshops are all located in and around Cairns -Liquorland Woree, Liquorland Southside at Woree and Liqorland Coastwatchers at Trinity Beach.

Source: The Shout, 22 February 2013