Redcape Hotel, the hospitality subsidiary of listed manager MA Financial, has acquired a hotel portfolio from Iris Capital for nearly A$500m (€303m), setting a record for the largest freehold going concern hospitality deal in Australia.
The portfolio of hotels and pubs is located across Sydney and the Hunter region in New South Wales, with several of the assets acquired alongside planning approvals for residential developments.
Chris Unger, Redcape managing director, said: “This transaction continues our strategy to diversify our portfolio through long term growth opportunities, boosting its resilience and outlook as a result.”
Sam Arnaout, founder and CEO of Iris Capital, said: “This transaction represents the successful completion of a strategy we commenced more than a decade ago to identify exceptional regional opportunities, invest with conviction and unlock long term value through active ownership and development.”
The sale enables Iris Capital to redeploy significant capital into its next generation of mixed-use developments and strategic acquisitions across Australia, he added.
John Musca, executive director, hotels and hospitality group, JLL, who brokered the deal, said: “This deal exemplifies the maturation and sophistication of Australia’s hotel investment market.
“Freehold going concern transactions of this magnitude emerge from an acute understanding of varying industry stakeholder strategies and their differing objectives and bandwidths at any given point in time, complex structuring capability, and absolute market confidence.”
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