Amid the respite of a strong end to a stormy year, ASX-listed Redcape has exchanged contracts to acquire O’Donoghues Hotel in Emu Plains for $30.5 million.
The western Sydney pub is a large-format local, offering a classic mix of food & bev, functions, entertainment and gaming room with 30 machines. It is currently at 440 on the Liquor & Gaming list of NSW venues, having slipped 140-odd places from 299 in December 2019.
The sale price reportedly included some surrounding retail properties, into which the group is likely to invest some capital to improve tenancy returns. Settlement is expected in February 2021.
“We are confident in our ability to continue to drive growth for our Securityholders and deliver our long-term commitment to building sociable and sustainable communities with high levels of care for our staff and customers,” offered Redcape CEO Dan Brady.
Located on the Great Western Highway at Emu Plains, the Irish-themed pub is just 1.4 kilometres from the site of the Log Cabin – a greenfield re-build announced last March by Laundy Hotels, expected to open in 2021.
Reporting a positive trading quarter to end 2020, Redcape (ASX:RDC) has affirmed interim distribution of 1.83 cents per stapled security for the period. It also announced expanded debt headroom via the addition of a $100 million funding facility expiring December 2025, bringing total debt facilities to $600 million.
The group also notes the flow-on effects of a dynamic period in pub sales in the second half of the year, as seen in Laundy’s purchase of the Bidwell, Moelis’ clean sweep at Darlinghurst, and Iris’ price-topping purchase at Narwee, amongst many others.
“Given that pub-sale transactions have recently occurred to a broad range of purchasers within the market, approximately one-third of our portfolio is currently being independently valued prior to the end of December 2020,” noted Brady.
