By Andrew Starke
The Redcape Property Fund – formerly Hedley Leisure & Gaming Property Fund – has signaled its intention to offload more of its pubs while also having its bank loan facilities extended.
Improved market conditions and a measured asset sale program to reduce debt have enabled Redcape to negotiate an extension of its $634 million bank loan facilities until October 2012.
The listed pub group has so far completed the sale of 11 venues, divested its holding in the ALE Property Fund and is at an advanced stage of negotiation on a further four pub sales.
In a statement to the Australian Stock Exchange, Redcape executive chairman, Colin Henson, said Redcape aimed to “sell further pub assets in an orderly manner over the period to October 31 2012”.
Two thirds of Redcape’s assets were recently valued for mortgage purposes and, on the basis of this estimate, expects to book a write-down of about 6 percent across the portfolio.
Redcape currently owns 80 pub freeholds and 13 other properties for a total of 93 properties, down from 104 in June last year.