By Vanessa Cavasinni, editor Australian Hotelier
Redcape has sold the freehold to the gaming and accommodation behemoth, All Seasons Hotel Bendigo.
As one of Australia’s largest combined gaming and accommodation assets, the freehold reportedly sold for approximately $24 million.
Occupying a 3.5 hectare site, All Seasons Bendigo includes 77 four-star-rated hotel rooms, 100 gaming machines and extensive conferencing, function, bar and restaurant facilities licensed for in excess of 1,800 patrons. It is leased until 2052 to an experienced hotelier.
JLL Hotels & Hospitality negotiated the deal on behalf of Redcape, and Mathew George, VP, suggested that “the strength of the tenant’s business coupled with the highly desirable land-bank of 3.5ha of commercially zoned city-centre property presented a compelling property and re-stapling arbitrage for astute investors.”
The freehold exchanged hands for roughly a 6.5 per cent yield, with a fixed 3.75 per cent annual rent growth.
“As the largest privately tenanted regional hotel investment sale on record the outcome is robust, evidencing not only the quality of the offer but the intense competition for the asset generated by a highly successful international sales process,” stated John Musca, JLL national director.
“It was virtually a Charter Hall/ALH type result for regional assets really.”
This the first asset transaction for Redcape since the group was purchased by Moelis Australia, however the sale process for the freehold began before the Redcape portfolio was purchased by the managed fund.
The All Seasons Hotel Bendigo freehold was said to be purchased by a “private sophisticated Melbourne investor” who already has a portfolio of privately-tenanted investment hotels.