Redcape has announced it has acquired the Orion Hotel in Springfield, as well as launching a capital raise targeting $50-$70m for further expansion.
Redcape Hotel Group has announced the acquisition of the Orion Hotel Springfield, continuing its recent expansion into south-east Queensland, as well as the launch of a new capital raise.
The transaction follows the recent acquisition of the four Maeva Hospitality pubs on the Sunshine Coast, among other pub asset investments in the greater region.
The Orion Hotel, located at the Orion Springfield Central shopping centre in the master planned Springfield City development south-west of Brisbane, was opened in 2015 by hotelier – and vendor – Jim Davies.
“The Orion is a very attractive bolt on to the portfolio. The venue enjoys a high volume of passing foot traffic and is well supported by the local community and we are looking forward to being a part of it. Jim and his team have done a wonderful job and we are proud to keep that going,” stated Redcape managing director Chris Unger.
Davies said: “I firstly want to thank all my loyal staff over the journey and wish Redcape all the very best for the future with Orion, it is an exciting opportunity for the fund.”
The Orion transaction was managed by JLL’s Tom Gleeson and CBRE’s Paul Fraser.
“The sale of Orion again demonstrates the strong appetite in the Queensland market for quality assets that possess strong, consistent cash flow,” stated Fraser.
Gleeson added: “We have witnessed a distinct uptick in hunger for leaseholds within Queensland, as they provide excellent strategic balance to portfolios.”
Expansion and capital
The Orion Hotel acquisition will take the total spent on new venues in the last 12 months to over $250m. With strong growth across the pubs and over $30m spent on venue refurbishments, Unger is excited about where the MA Financial-backed fund is at.
“The pubs have been trading very well for some time now, with customers continuing to see pubs as a mainstay of social and dining occasions and representing great value. On the back of our exceptional 2025 financial year, where we have invested heavily in refurbishments and new venues that complement the portfolio, our pubs are well positioned for this trend to continue, and we are looking forward to more of the same.”
Redcape has also announced a capital raise targeting $50-$70m which has strong support from existing investors. The additional equity will be used to fund accretive acquisitions and additional growth capex, aimed at enhancing the fund’s return for investors. As a result, Redcape has increased its FY26 target distribution to 11.25 cents per unit providing a distribution yield of 7.5% on the new equity raised plus any capital growth.
In a recalibration of its venue portfolio, Redcape has also been divesting pubs further south – most recently selling the famed Beach Hotel Byron Bay for $104m to Melbourne-based businessman Scott Didier AM and family. The group has also divested pubs in western Sydney and greater Sydney, including Cabramatta Hotel, El Cortez Hotel, the Eastwood Hotel and The Australian Hotel & Brewery.