BAM OFFLOADS BIG GAMER VAUXHALL INN TO REDCAPE

In Property by Clyde Mooney

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Redcape has let loose the chequebook again, acquiring Bondi Asset Management’s Vauxhall Inn for around $40 million.

Bondi Asset Management (BAM) was formed in 2015, counting Sydney hotelier Andrew Lazarus and former Citibank director Stuart King as stakeholders.

BAM kicked off plans for pub acquisitions and management with the $28 million purchase in January 2016 of the Vauxhall, on a big 3,510sqm block at the junction of Parramatta and Woodville Roads, Granville.

The group, fronted by King as CEO, has worked to lift the pub’s valuation through gaming operations management and a recent comprehensive renovation.

The two-storey heritage-listed hotel was first established in 1852, rebuilt in the 1930s in its distinctive Art Deco style. It counts a public bar area, bistro, accommodation, parking, and modern gaming room with 30 machines.

Upon purchasing it was ranked #68 on the Liquor & Gaming list of NSW venues, climbing swiftly to #24 by June 2016. By September 2017 it had slipped to #70, but rebounded back into the Top50 by the end of the year.

“We’ve only owned the hotel for a period of approximately two and a half years, however in that time we have concluded a material renovation, as well as moving the hotel up the NSW gaming rankings to position 47 in December 2017,” says King.

The latest acquisition, reported as “over $40 million” is Redcape’s second in the past month, following the purchase of Peter Ryan’s Sun Hotel in Townsville mid-June. A $40 million sale price would represent average annual appreciation around 17 per cent for BAM.

Central to transport hubs and bound to benefit from Parramatta’s residential and commercial boom, the underlying land value of the corner site presents multiple best-use options.

“Situated in the suburb of Granville, at the Southern gateway to Parramatta, the purchase of the Vauxhall Inn Hotel represents the addition of another real estate backed quality hotel asset to the Redcape portfolio,” offers Redcape CEO Dan Brady.

“We look forward to applying our expertise in this area to ensure the continued strong performance of the hotel and to providing more quality hospitality and entertainment experiences to this local community.”

Redcape already owns consistent Top40 pub, the Royal Hotel Granville, currently #37.

Off-market sale of the Vauxhall Inn was brokered by Ray White Asia-Pacific director, Andrew Jolliffe, who suggests the Top50 bracket is an “increasingly unique” beast, incorporating a mix of position, performance and potential.

“As such they are in equal parts highly sought after, hugely profitable and particularly robust in terms of revenue reliability.”