Sydney’s St George Hotel sold in huge $47m deal
In the largest gaming hotel deal negotiated in Australia this year, the publicly-listed Redcape Hotel Group has sold the St George Hotel in the western Sydney suburb of Belmore for $47.1 million, to two private hoteliers.
Sporting a maximum of 30 poker machines, the gaming-focused St George Hotel is ranked 43 in NSW for its ability to turn a gaming machine net profit.
It was sold to Michael Wiggins and Joanne Cassar, who recently sold the Oxford Hotel in Sydney’s Drummoyne for $41.75 million to pub mogul, Arthur Laundy.
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Redcape sold the St George Hotel on a 2.7% premium to its June 2019 independent valuation.
Redcape chief executive Dan Brady says funds from the sale will further strengthen its balance sheet, with gearing reducing to 36%, at the lower end of its target gearing range of 35% to 45%.
He says the sale will provide funding for additional acquisitions.
Redcape says its guidance for the 2020 financial year remain unchanged following the sale, which is due to be completed in February.
Other major pub sales negotiated this year include Sam Arnaout’s Iris Capital’s $62 million acquisition of Manly’s Hotel Steyne.
It was bought from a consortium of businessman including Mr Laundy, John Singleton, Robert Whyte and financier Mark Carnegie.
This article originally appeared on www.theaustralian.com.au/property.
