Sam Arnaout’s Iris Capital empire has taken another big step with the $105 million purchase of the iconic Lasseters Hotel Casino in Alice Springs.
Formerly known as the Diamond Springs Casino, the property opened in 1981. Known as an oasis in the red centre, it featured in the 1994 movie The Adventures of Priscilla, Queen of the Desert.
For the past 25 years it has been under the same ownership, after the preceding Ford Dynasty P/L (trading as Lasseters) was acquired in 1997 by Quilter Assets Australia, out of Malaysia. In 2004 Lasseters International P/L was listed on the Singapore Stock Exchange.
When Quilter bought Lasseters it counted a 75-room hotel, a casino with 188 gaming machines and around two-dozen table games, but limited dining facilities.
Since that time more than $50 million has been spent in renovations and upgrades, resulting in a 4.5-star hotel with over 200 rooms offering concierge and room service, multiple restaurants and bars and a nightclub, TAB, sports theatre, pool-side café, the Alice Springs Convention Centre, health facilities including a fully-equipped club and day spa, and upgrade to an international standard casino boasting 320 EGMs and the latest table games.
Lasseters International Holdings has been looking to exit, thought to be motivated by the prospect of tougher regulation affecting its financing and the potential for it to see an increase at its next tax review by the NT government.
“The gaming sector in Australia is highly regulated,” came a statement by the company. “Recent events on this sector and the issues with other casino operator in Melbourne in relation to regulatory inquiry on alleged money laundering and possible links to organised crime may have an impact on financial institutions’ risk appetite.”
Announcement of the signed agreement of the proposed sale went to the Singapore Stock Exchange. Existing staff will reportedly receive a full transfer of all entitlements to new owners.
“Lasseters’ greatest asset is the dedication and commitment of the staff, some of whom have been with the company in excess of 20 years,” said chief executive Datuk Paul Wong.
“On behalf of the board, we wish [them] the very best in this next chapter and express our most sincere gratitude to each and every Lasseters employee who has been a part of this most remarkable journey.”
Iris Capital continues to pioneer as publican-developer, producing big-ticket projects such as Newcastle’s East End, and the $65 million high-profile Bourbon and Empire site at Kings Cross.
It took the title for the biggest hotel deal of 2020 with the $180 million acquisition of 17 Ibis hotels from AccorInvest, and biggest pub deal with the Steyne Hotel in Manly.
HTL Property’s MD Andrew Jolliffe advised on the Lasseter’s transaction, and commends Arnaout’s diversification into another complementary sector.
“The ability for our client to leverage its experience and balance sheet capacity into a related asset class is as impressive as it is rewarding, and Sam and the team should be congratulated for executing this strategy so effectively.”
