Moelis-backed Redcape Hotel Group has snapped up two Sydney pubs, the Vauxhall Inn Hotel in Granville and the Australian Hotel & Brewery in Rouse Hill.
The pub and hotel owner is chasing an ASX-listing, which was initially flagged after it was acquired by a Moelis Australia managed fund for $677 million in 2017.
Redcape bought the Vauxhall Inn Hotel from Sydney-based fund Bondi Asset Management, who acquired the hotel in 2016 for $27 million.
The purchase price remains undisclosed, although Redcape likely paid over the $40 million mark – reflecting the price of similar assets like the Tennyson Hotel which was sold to Merivale’s Justin Hemmes for $37 million and the Coolibah Tavern in Merrylands which sold for $40 million.
The pub owner also recently expanded its Queensland asset base, picking up the Rising Sun Hotel in Townsville for $22 million in June.
Ray White Asia Pacific director Andrew Jolliffe brokered both the Rising Sun Hotel and Vauxhall Inn Hotel deals.
"Hotels like the Vauxhall Inn occupy footholds at major transport intersections, and are similarly positioned in respect of relativity to the epicentre of housing development growth corridors throughout Sydney and its well-publicised 100,000 new resident annual expansion rate” Jolliffe said.
Redcape's initial public offering is set for late-2018, according to the Financial Review “Street Talk” column. ASX-listed Moelis Australia are reportedly seeking backers for three new pub purchases – adding to its portfolio as it seeks to fund its expansion. Potential investors were told that Redcape’s portfolio had experienced a $40.5 million uplift in the three months to June.
Redcape will close the pub fund in mid-August.