Redcape has divested another two pubs in suburban Sydney, selling the Vauxhall Inn at Granville and the Wattle Grove Hotel in Liverpool in two separate deals, for a cumulative $73m.
The pubs have been acquired by two separate groups who both plan to enhance the respective assets via strategic repositioning and refurbishment. The Vauxhall Inn has been acquired by Sydney-based Orion Hotel Group, headed up by Michael Wiggins, Nick Savas and Myles Docker.
“We thank Redcape for a seamless and respectful transaction and look forward to the next incarnation of the Vauxhall under Orion Hotel Group ownership”, said Wiggins.
The Vauxhall Inn sits on a prominent 3,500sqm land parcel on arterial Parramatta Road, with future development potential via an existing design scheme for a standalone 75-room accommodation hotel on the site. With a 6am trading approval on Fridays and Saturdays, 30 EGMs and weekly revenue in excess of $153,000, the pub has a proven track record of performance with immediate value-add options.
The off-market sale was negotiated on behalf of Redcape by JLL Hotels & Hospitality Group. JLL also brokered the off-market sale of the Wattle Grove Hotel in Liverpool to Melbourne-based Francis Venues, alongside HTL Property.
This is the second Sydney hotel acquisition for Francis Venues, who acquired the Kings Head Tavern in Hurstville off Redcape in July.
“We are delighted that our client, Francis Venues, has continued its northbound incursion into NSW with the acquisition of the Wattle Grove Hotel; following our recent sale of the Kings Head Tavern to Tom Francis and his family,” advised HTL Property’s Dan Dragicevich.
The additions of Kings Head Tavern and Wattle Grove Hotel add to Francis Venues seven hotels in Victoria, headed up by second-generation publican Tom Francis.
“As a family, we are excited to further continue our expansion into the Sydney hotel market with the acquisition of Wattle Grove Hotel. This marks a significant milestone for us as we continue to grow beyond our home state,” stated Francis.
Wattle Grove Hotel is attached to the Coles-anchored Wattle Grove Shopping Village, and brings in approximately $175,000 in weekly revenue with a 39 per cent contribution from gaming. The hotel asset also includes a separately leased bottle shop inside the retail centre, generating over $60,000 per week in sales.
Redcape managing director Chris Unger congratulated both acquirers of these venues.
“We wish both the Orion and Francis Group the best and are confident that both venues will continue to thrive under their respective stewardship. For Redcape, this transaction continues the successful execution of our capital management strategy and rebalancing the portfolio.”
The sales of the Vauxhall Inn and Wattle Grove Hotel continue the recalibration of Redcape’s portfolio. It follows the sale of three Sydney pubs in July, for a combined $136m – including the aforementioned Kings Head Tavern to Francis Venues.
JLL’s Ben McDonald suggested that the sales show the continued interest in pub assets across New South Wales, with sales having picked up considerably in the last couple of months.
“The sector-specific appeal of the NSW pub market continues to draw competitive bidding from investors around the country. These transactions shine a light on the ongoing appetite for assets with strong underlying trading fundamentals in locations underpinned by irrefutable growth narratives.
“Our live market intelligence and intimate knowledge of underbidder capital points to a strong end of the year for the sector.”