The Moelis Australia-managed Redcape Hotel Group has increased its weighting to the Queensland pub sector after paying $22 million for Townsville’s Rising Sun Hotel.
The Far North Queensland pub in the suburb of Mundingburra was sold by industry veteran Peter Ryan, after 30 years of ownership.
Mr Ryan along with his sons John and Patrick runs Ryan’s Hotels, which operate a number a of well-known Sydney watering hotels including The Ship Inn and Ryan’s Bar.
Moelis Australia paid $677 million in May last year to acquire the Redcape Hotel Group and its more than two dozen pubs in NSW and Queensland for $677 million from US hedge fund owners Varde Partners and York Capital.
It acquired the portfolio with plans to float it on the Australian Stock Exchange – following the successes of ALE Property Group and another Redcape offshoot, Hotel Property Investments – but an IPO may not happen until next year, according to some media reports.
With the majority of the Redcape portfolio in NSW, the acquisition of the Rising Sun Hotel will increase its Queensland pub ownership to five properties, including two pubs in Mackay.
Redcape CEO Dan Brady said the group planned to continue to grow its portfolio “with signature property holdings along Australia’s Eastern States”.
“The Rising Sun Hotel is a quality asset that complements our portfolio of strategically located, largely freehold owned hotels … and is in line with our disciplined approach to acquiring quality assets that generate shareholder value,” Mr Brady said.
Andrew Jolliffe from Ray White Hotels negotiated the off-market deal on behalf of Mr Ryan. He said investor appetite, which had been focused in NSW, was growing for pubs in Queensland and Victoria.
“Our Queensland office sold the Acacia Ridge Hotel in Brisbane recently for in excess of $26 million. The sale of the Rising Sun in Townsville reflects a very active time in the region,” he said.