Investment house MA Financial has swooped on four pubs in NSW’s Hunter Valley and two in Sydney in a $500 million deal with developer and vendor Sam Arnaout’s Iris Capital.
The hotel transaction is one of the largest involving a freehold going concern in Australia’s history.
MA Financial – under its Redcape Hotel group, a business previously listed on the ASX – has purchased the 104-room QT Hotel Newcastle, the Gunyah Hotel, the Hotel Elermore and Sydney Junction Hotel in the Hunter Valley. It also scooped up the Revesby Pacific Hotel and Crown Hotel Revesby in Sydney.
Iris Capital, which has spent a decade developing sites in Newcastle, said the sale was triggered by its decision to focus more on its Sydney pubs, including the Hotel Steyne and Oceania luxury apartment development in Manly. The group also recently acquired the St Ives Shopping Centre development.
Redcape, which sold the Beach Hotel in Byron Bay last year for $140 million, is mainly focused on the NSW’s northern regions. The new pubs will give it the opportunity to potentially develop apartments above the venues.
The Elermore, which it owns in Port Macquarie, is adjacent to a planned large-scale Elermore Shopping Centre mixed-use redevelopment anchored by Woolworths.
Redcape managing director Chris Unger said the deal “continues our strategy to diversify our portfolio through long-term growth opportunities”. JLL’s John Musca and Ben McDonald advised on the sale.
Meanwhile, Sydney’s Epping Hotel, owned by developer John Lyon’s Lyon Group, is for sale. The Beecroft Road pub sits opposite the Epping station and also has long-term development potential.
On a 1350-square metre site, it generates weekly revenue of $234,000 excluding GST, equating to about $12.1 million annually.
JLL’s Ben McDonald and James Smithers are handling the sale.
Drive-through
National developer Griffith Group is selling its recently-developed flagship Guzman y Gomez Thornleigh drive-through restaurant for about $13 million-plus.
The Mexican-themed venue at 182 Pennant Hills Road is near one of the highest-grossing McDonald’s restaurants in the country. The property is also close to the ASX-listed group’s headquarters and was completed in June this year.
Covering 2682 square metres, the property includes a dual lane drive-through, 30 on-site car parks and motorbike parking for UberEats and delivery drivers.
GYG has a long 20-year net lease with three further 10-year options extending to 2076, plus fixed 3 per cent annual rent reviews. The tenant is also responsible for all outgoings including land tax, insurances and management fees.
The sale campaign is being led by Stonebridge’s Tom Moreland, Rory Alexander, Aike Sakeson and Michael Collins.
Why not Wyong?
Land Lease developers, including Nick Collishaw at Lincoln partners and Simon Owen in his new role at Eureka, may be among many investors running the ruler over the Wyong Village caravan park on the Central Coast.
A private syndicate of owners, who used Vivacity Property as development consultants, are selling the park with planning approval for a further 247 sites. The 5.9-hectare village in Kanwal was formerly the Oasis Caratel Caravan Park. It’s a mixed-use long-term residential and rental park.
Caravan parks are being snapped up by land lease developers on which they retain ownership of the underlying land and then construct manufactured homes to lease to long-term tenants. Known as the “land lease” model, it’s an expanding asset class for investors that has attracted listed groups such as Stockland and Mirvac and private developers including MA Financial.
Under the NSW government’s Rezoning Pathways Program, Wyong Village can be redeveloped into a high-density mixed-use precinct with multiple residential buildings, ground-floor commercial sites, and new public open space.
HTL Property’s Andrew Jackson declined to give a price, saying the underlying land and projected developments made valuing it uncertain.
Mt Druitt
A fully leased mixed-use building at Mount Druitt in the west has sold for $6 million to a local dentist on a 6.39 per cent net yield.
The three-storey, 1243-square metre property at 13 Cleeve Close, is fully leased to The Salvation Army, SydWest Multicultural Services, Nova Employment and Conics Education.
The property is in the heart of Mount Druitt’s town centre within walking distance of the railway station and recently refurbished Westfield mall.
Colliers’ Harry Bui, Zhenni Lu and Andrew Bui advised on the sale.
Meanwhile, a former Bonds manufacturing facility in Sydney’s west has leased to Australian Consolidated Packaging Industry, trading as Packlogica, on a three-year term.
The 9210-square metre Pendle Hill industrial property was leased through John Karlovasitis and Elijah Shakir from ReVest Property Group.
carolynannecummins@gmail.com
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