Redcape buys troubled Queensland pub

Redcape Property Group has purchased The Lost City Tavern in Upper Coomera for a figure reported to be in excess of $10 million.

The hotel was part of Gold Coast businessman Robert Fraser-Scott's pub portfolio, which fell into receivership last year.

Situated in a growth corridor north of the Gold Coast, the venue comprises three bars including a 1920s country-themed bar and grill, Italian-style restaurant Mamma Mia's, 40 EGM authorities, an onsite liquor barn and three detached bottleshops.

The Egyptian-themed gaming room last year won the National Australian Hotels Association's Best Gaming Award.

RPG general manager of marketing and commercial Alistair Flower told TheShout Redcape will be repurposing some of the pub's areas to make them more "community-centric".

The onsite Cellarbrations store along with the three satellite bottle shops will be rebranded as Liquor Stax, as is now the case with the other Redcape bottleshops.

The sale represents another major purchase in the region, with Riversdale Group purchasing Brisbane's Elephant Arms in April for north of $26 million.

Selling agent Jones Lang LaSalle Hotels (JLL) marketed the property on behalf of receivers at Ernst & Young, which were appointed in April 2012 to control the portfolio that also included the Boathouse Tavern and the Warehouse Tavern, shopping centres and an IGA outlet.

JLL declined to comment on the transaction except to say it was "hotly contested" due to its favourable South-East Queensland location and diverse income streams.

Source: The Shout, 12 August 2013