By james Atkinson
Hotel Property Investments (HPI) will spend $12 million developing and redeveloping pubs leased to Coles, HPI’s prospectus has revealed.
The HPI offer document confirms that all the 41 pubs and seven detached bottle shops in its portfolio are currently leased to Coles tenants, which provide 95 per cent of HPI’s rental income.
The remaining five per cent of HPI’s rental income is derived from speciality tenants leasing on-site retail outlets including 7-Eleven, Nightowl, Nando’s, Subway, Blockbuster, Noodle Box, The Good Guys and Unitab stores.
The Redcape spin-off said it has agreed to undertake development projects at Brighton Metro Hotel in South Australia and Fitzy’s Loganholme Hotel in Queensland by June 2015.
“It is expected these developments will cost HPI $4 million (plus GST),” the company said.
HPI has also agreed to a $8 million (plus GST) development and redevelopment of the Kooyong Hotel in Mackay, Queensland, but this construction is not expected to proceed for some time yet.
Allotment of HPI securities is scheduled to take place on December 10 with trading to commence on a deferred basis the following day.