Redcape Moves to Divest North Queensland Pubs

Multi-state hotelier Redcape Hotel Group has listed two large format pubs in north Queensland.

The MA Financial-backed fund, the owner and operator of 35 hotels nationally, has put The Shamrock Hotel and The Grove Tavern in Mackay to market via an expressions of interest campaign.

The Shamrock on the Bruce Highway in West Mackay, and The Grove in Andergrove, north of the CBD, feature indoor and outdoor dining facilities, gaming lounge, sports bar, bottle shop and function facilities for corporate and private events.

▲ The Shamrock Hotel in West Mackay and the Grove Tavern (main pic) are being put to the market by Redcape.

Both are large holdings with “multiple revenue streams in established areas of the burgeoning Queensland regional centre”, according to Redcape.

Redcape managing director Chris Unger indicated the likely sale of assets in a recent note to fund investors to take advantage of an asset class that “enjoys the support of key operational and lending stakeholders, as evidenced by recent sales nationally”.

“As we have demonstrated in the past, a key strength of the Redcape Group is the ability to leverage the depth and quality of the portfolio to selectively recycle capital through successful divestments,” he said.

“Fuelled by an amazing team of people, both The Grove and Shamrock have performed strongly for us over many years providing all-encompassing hospitality experiences for their communities.”

The two hotels are being sold separately or in one line, via an EOI sale process co-ordinated by HTL Property and JLL.

“We’ve been fortunate to manage the sales of multiple North Queensland hotels to Sydney-based investors in the past month, indicating to us a robust and still particularly fertile transaction platform for cross border investment by both corporate and private entities.” HTL Property managing director Andrew Jolliffe said.

“Mackay is a significant regional centre in North Queensland, and the subject hotels illustrate the best examples of multi-faceted and highly profitable hospitality businesses; with the ability for a successful party to create a solid investment base should scale be an important objective,” JLL’s Tom Gleeson said.