Back in private hands, Redcape has listed its north shore mecca, Minskys Hotel, with untapped potential, in Sydney’s upmarket Cremorne.
Prominently positioned on major thoroughfare Military Road in Cremorne Plaza, formerly known as the Metropole, housing a Supa IGA, medical and professional businesses and specialist retailers, Minskys Hotel previously incorporated an upstairs piano bar and nightclub.
The freehold going concern Hotel, with 24-hour trading approval and 25 gaming machines, includes strata title on a retail suite and vast first floor commercial office suites, which Redcape has been occupying as office space. The combined properties are circa 3,344sqm.
Managed by MA Hotel Management, previously Moelis Australia, Redcape Hotel Group own and operate 36 hotels, along with 26 bottle shops, three accommodation venues and The Australian Brewery.
The group listed on the ASX in late 2018, but a change of direction and vote by shareholders saw it de-list last September.
Redcape’s figures have traditionally shown a high gaming component, and Minskys EGMs have current estimated market value north of $12 million, but at #302 on the Liquor & Gaming list of NSW pubs Minskys is one of the group’s lower-ranked operations, against the likes of El Cortez (#6), the Eastwood Hotel (#19) and Cabramatta Inn (#26).
Part of Sydney’s lower north shore, Cremorne and the immediate areas are tightly held commercial precincts with low vacancies and strong demand.
Redcape occupy the entire first floor (circa 1,700sqm), which used to be bars and function areas, meaning Minskys is effectively trading on less than half of its approved trading footprint.
The additional space offers potential purchasers flexible value-add uses, including opportunity to reposition and incorporate it back into the hotel business. It could otherwise be re-leased for alternate commercial uses, in a multi-level retail centre with dedicated onsite customer parking, amenities and proximity to transport.
The asset is being sold for the first time in nearly 20 years with price guidance of circa $35 million, through JLL Hotels John Musca and Gordon McFadyen.
“Even using a conservative $5-6,000 per sqm as a current value for this surplus area would unlock $10m+ of additional intrinsic value across the underlying real estate – over and above the operating hotel,” poses McFadyen.
The freehold going concern of Minskys Hotel and commercial suites is being sold via Expressions of Interest, closing 4 May.
