Redcape continues its plunge into SEQ, purchasing the newly built Flagstone Tavern in Brisbane from pub developers Balmoral Hospitality Group.
Set on a 3,975sqm site in the city’s bustling south-west development corridor, adjacent to a new Coles Shopping Centre, the Tavern is within the residential community being constructed by listed heavyweights PEET and MTAA Superannuation.
Around 50 kilometres south of the CBD and currently home to around 6K residents, Flagstone is expected to see 50K new homes around the town centre in the coming decades.
Following MA Redcape Hotel Fund’s divestment of both the Cabramatta Hotel and El Cortez Hotel to Iris Capital, it has employed a reinvestment strategy that has brought in five Queensland hotels in the past three months, seen in the acquiring of the Willow Hotel in Moorooka, Commercial Hotel in Redbank Plains and Lucky Tree Tavern in Durack, then the Saltwater Creek Hotel in Helensvale and The Prince Consort Hotel in Fortitude Valley.
“The acquisition of the Flagstone Tavern is a continuation of our strategy to expand our presence in key growth markets and to increase the Fund’s distribution whilst providing long-term value for our investors,” explains Redcape MD Chris Unger.
“Flagstone is a rapidly developing community, and we see strong potential for the team to further integrate the venue into the fabric of the area as it grows.”
On a quest to optimise the portfolio, Redcape reports it is focused on identifying assets “that align with our investment strategy and operational strengths”, underpinned by strong trading figures. The results have seen the Fund further upgrade its investor distribution guidance.
“We are very excited about the recent acquisitions we have successfully completed and what they present to the Fund as we continue to execute on our strategy,” adds Unger.
Having divested their former Denfish portfolio to Redcape in late 2018, in 2019 Joel Fisher and Andrew Denmeade’s Balmoral Hospitality Group (BHG) purchased the Flagstone greenfield project. A Tavern featuring large indoor and outdoor bars and dining, a sports bar, gaming lounge and child-friendly play areas was designed and constructed, equipped with 45 machines authorities and approval to trade until 2am, and 4am in the gaming room.
The newly built pub was sold in an off-market deal through HTL Property’s Glenn Price, Dan Dragicevich and Andrew Jolliffe, who associate the sale with the momentum seen in the last dozen weeks of 2024 and foresee a continuation of “key industry actors” expanding beyond NSW.
“We’ve continued unearthing high quality acquisition opportunities in Queensland for Redcape, and others, and reconfirm our view that 2025 will be a year where the activity focused around the south-east of the state augments to other areas within the state, including the far north and western districts,” says Price.
