One of the largest gaming hotel groups in NSW, Redcape, has acquired the Vauxhall Inn Hotel in western Sydney.
The Granville pub, which is one of the top 50 gaming hotels in NSW, sold for more than $40 million, according to industry sources.
It was the first asset bought by Sydney-based Bondi Asset Management’s (BAM) unlisted pub fund for $28 million in January 2016.
BAM chief executive officer Stuart King said the new owners would benefit from nearby infrastructure, commercial and industrial development.
“We’ve only owned the hotel for a period of approximately two and a half years, however in that time we have concluded a material renovation, as well as moving the hotel up the NSW gaming rankings to position 47 in December 2017,” Mr King said.
The ranking comes from Liquor and Gaming NSW’s bi-annual data, which ranks all NSW clubs and hotels by its gaming machine net profit, but does not reveal venue-specific figures.
A net profit of $348.97 million and $176.54 million from gaming machines was recorded by the government body within the local government areas of Cumberland Council and the City of Parramatta, both of which Granville is a part of.
Redcape chief executive officer Dan Brady said the main drawcard of the pub, which sits on 3510 square metres, was the underlying property value.
“Situated in the suburb of Granville, at the southern gateway to Parramatta, the purchase of the Vauxhall Inn Hotel represents the addition of another real estate-backed quality hotel asset to the Redcape portfolio,” Mr Brady said.
“The immediate area is currently enjoying significant investment as part of the NSW government’s Parramatta Road Corridor Urban Transformation Strategy. Having recently undergone a renovation by the vendors, the acquisition is an obvious choice given our existing presence in what continues to be a strong growth area of Sydney.”
The heritage-listed Vauxhall Inn Hotel is a two-storey pub that was established in the 1850s and rebuilt in the 1930s. It has a ground-floor public bar area, 30 gaming machines, a bistro, accommodation and 60 car parking spaces.
Selling agent Andrew Jolliffe, from Ray White Hotels, added that top 50 gaming hotels with land value in “housing development growth corridors throughout Sydney” are hot property.
“(Redcape) quite liked the positioning of it, and the land value. It’s on a massive intersection and there’s lots and lots of development going on around it,” he said.
“As such they (similar hotels) are in equal parts highly sought after, hugely profitable and particularly robust in terms of revenue reliability.”
The Granville hotel deal follows close on the heels of Redcape’s $22 million purchase of Townsville’s Rising Sun Hotel in June 2018 from publican Peter Ryan after he had held it for 30 years.