Redcape has added another two Queensland pubs to its portfolio with the acquisiton of The Prince Consort and Saltwater Creek Hotel for a combined value of $66m.
Following the purchase of three large-format pubs in south-east Queensland in December last year, again for a total value of $66m, the acquisitions reflect the group’s ongoing portfolio management strategy.
In Brisbane’s Fortitude Valley, Redcape has purchased The Prince Consort, formerly known as the Elephant Hotel, from Tilley & Wills Hotels, who acquired the pub back in 2020.
Established in 1888, the heritage-listed pub is a multi-faceted hospitality asset with an established reputation as a premier entertainment destination. The expansive multi-level building occupies a 1,237sqm site with multiple bars and function spaces, an outdoor beer garden and kitchen.
Following the divestment, Tilley & Wills CEO Nick Wills expressed his delight at the group’s tenure with the venue.
“It’s been an amazing four years. The pub has been incredible and won lots of awards, but we’re focusing more on suburban and accommodation assets. And we’ve just taken over at the Aanuka Beach House, which is more in tune with where we’re heading. But we’ve loved our time at The Prince Consort.
“Redcape are amazing operators, and we wish Chris and his team all the best,” he continued.
The Saltwater Creek Hotel in Helensvale is a well-established pub with a bottle shop, gaming and refurbishment potential, benefitting from its location in the northern Gold Coast region.
Speaking about the new acquisitions, Chris Unger, managing director of Redcape, said: “The Prince Consort and Saltwater Creek both present outstanding opportunities to enhance our portfolio and team with their unique market positioning and earnings potential.
“Brisbane’s Fortitude Valley is a dynamic hospitality hub, and The Prince Consort’s reputation as a multi-experience entertainment venue makes it an exciting long-term addition to the portfolio.
“Likewise, Saltwater Creek’s strong local following aligns with our model to own and operate pubs that are at the heart of their communities, and we can’t wait to invest capital into the venue to enhance the customer experience and grow the business,” he explained.
With Redcape’s recent expansion into Queensland now standing at five venues, a sixth unnamed venue is soon expected to join the portfolio, under conditional contracts. With settlement expected in March, the acquisition will bring Redcape’s total investment in the state to $145m.
As part of the fund’s portfolio renewal, Redcape has divested four Western Sydney pubs since September last year – most recently the Cabramatta Hotel and El Cortez Hotel in Canley Heights, and prior to that, the Vauxhall Inn in Granville and Wattle Grove Hotel in Liverpool.
Last year, Redcape’s strategy of renewing and diversifying its portfolio saw like-for-like pub earnings up 11.5 per cent year-to-date with the total return target of 15 per cent reaffirmed. Staying active in its portfolio management strategy, Redcape has more than $30m in growth capital planned for FY25.
“We are seeing continued strong results in our venues, and these acquisitions position us well for further improvement in investor returns. Our operational initiatives are proving effective at introducing new customers and our refurbishment program is also driving improved earnings,” Unger added.