Redcape has divested its lower north shore party venue Minskys Hotel to a partnership between Mitchell Waugh and the Karellas family.
Situated on major thoroughfare Military Road in Cremorne Plaza, the freehold going concern Hotel offers bar areas, with 24-hour trading approval, a separate bottle shop, and gaming room of 25 machines, ranked #302 in NSW and turning over more than $160k per week.
The two-level strata title also includes retail, and commercial office suites occupied by Redcape as its headquarters.
The combined properties total around 3,344sqm, in an area of tightly held commercial, with low vacancies and strong demand.
Redcape has owned the asset for more than 15 years and listed it in April, wielding price expectations north of $35 million.
A competitive public sales campaign is said to have generated 65 inquiries from potential buyers, ending in a joint venture between Waugh’s Public House Management Group (PHMG) and the Karellas’, for a reported $39 million.
Karellas Group already counts an office building behind Cremorne Plaza, and other commercial assets, including IGA supermarkets, and it is understood the parties will split the commercial and Hotel space.
Redcape Hotel Group still holds 35 hotels, complemented by 26 bottle shops, three accommodation venues and The Australian Brewery, and continues its game plan to turn over capital to create opportunities.
The proceeds of the Minskys divestment are earmarked to pave the way for future opportunities, and to strengthen the Group’s balance sheet.
Redcape appointed JLL Hotels’ John Musca and Ben McDonald to manage the sales process, who note it was “one of the most competitive campaigns we’ve managed in the last five years”.
