By Vanessa Cavasinni, editor Australian Hotelier

After a failed attempt at an IPO float last year, Redcape have now engaged Goldman Sachs to sell the group’s entire pub portfolio and associated bottle shops.

Redcape’s 26 pubs – generally with a large focus on gaming – have been placed on the market by the Australian arm of the global banking and investment firm, which has released flyer documents for the sale process, in the hopes of enticing a private equity firm.

Last year, the group attempted to garner enough investment to float an IPO on the ASX, then sought to sell the group to investment bank Moelis & Co and Sydney publican Nelson Meers, but the deal fell through during negotiations.

The new strategy looks to sell the group to a private equity firm, a strategy that paid off for John Szangolies last year when he sold Urban Purveyor Group to Quadrant Private Equity for close to $200 million.

Goldman Sachs has sent out flyers to a list of potential buyers, and initial bids are due within two weeks. The Redcape portfolio is valued at more than $700 million. The portfolio – 23 pubs in New South Wales and three in Queensland – includes top gaming pubs such as El Coortez and Eastwood Hotels.

Redcape has been contacted for comment, but did not reply in time for publication. Goldman Sachs declined to comment.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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