The gaming-gaming focused pub group Black Rhino Group has expanded from its home in Victoria with its first pub in South Australia.
The group has purchased the corner pub Newmarket Hotel in Port Adelaide in a deal brokered jointly by Grant Clarke of McGees and Mathew George of CBRE Hotels.
The Newmarket Hotel sits adjacent to the recently upgraded $50 million Port Plaza Shopping development, and its offer includes 32 EGMs, dining facilities including atrium dining, a public bar with TAB facilities, alfresco and smoking areas, and extensive upstairs rooms ready for future upgrades.
Under the guidance of owner David Tomsic, Black Rhino Group’s portfolio consists of 20 gaming pubs across Victoria, including Craig’s Royal Hotel, Ballarat East; Richmond Social; and the Waterloo Cup Hotel, Moonee Ponds. Many of the pubs have been acquired in the last year or so. Tomsic is planning on adding more pubs to the group’s portfolio over the next 12 months, but tighter yields in Victoria is forcing him to look elsewhere for growth of the group, in emerging gaming markets.
“In recent months we have seen some of the highest prices and sharpest yields being paid on record for gaming assets (leasehold and freehold),” stated George.
“Prices have well and truly surpassed previous levels, a trend fueled by the low cost of debt and rebounding trading results.
“Identifying the hotel opportunities on offer in SA, we worked with David and his team to fly over pretty soon after interstate travel and borders reopened – and they were quick to act, knowing that the Adelaide market has strong predicted growth, will benefit from recent reform to gaming legislation and offers relatively cheap additional entitlements, in comparison to Victoria.”
Tomsic identified South Australia as an ideal market for his group, and revealed some of the strategy behind the group’s plans to make that growth sustainable.
“Our plans are to buy pubs and keep the existing staff on, inject some capital into them, upgrade the product on the floor and deliver high-quality venues back to the patrons and locals
“I’m super excited about coming into South Australia and seeing in this new era for us, we have several other exciting deals to announce in the very near future – both regional and metro, and my senior management team share my enthusiasm about our expansion.”