By Clyde Mooney

The Redcape Property Fund, Laundy Hotels and the NLG Hotel Group are remaining tight-lipped on a proposed deal which is likely to result in the biggest ever sell-off of pubs assets in NSW.

Industry sources believe a deal will be reached during an exclusivity period that runs until May 18 although another extension period may be announced if the parties are close to agreement.

In early February the embattled Redcape group made a statement that hinted a deal with Laundy may be the air, an announcement met with great interest by the pub sector.

This sent the share price of their publicly-listed tenents, NLG, skyward with the publically listed operator’s value almost quadrupling.

However the looming spectre of gaming reform may have long-term consequences for NLG’s top-ranked gaming venues and impact on their future value.

Last year saw NLG negotiate with its landlords to increase gaming entitlements in its venues.

The entitlement requests are in line with conditions contained within NLG leases as the operator looks to cement its top positions inside the OLGR’s Top 200 NSW gaming venues.

In an interview, NLG CEO Dan Brady and general manager Alistair Flower assured TheShout that although they are unable to comment officially during the due diligence period, NLG will continue to pursue diversified revenue streams.

Arthur Laundy also preferred not to comment before the May 18 cut-off date.

There are currently 20 Redcape venues run by NLG, which could sell to Laundy Hotels for around $350 million dollars, leaving National Liquor and Gaming with around 15 leases as Woolworths-owned pub giant ALH Group takes over operations.

The sale could see Laundy’s hotel interests increase across NSW and Queensland to more than fifty venues. 


The Shout Team

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

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