After nearly two years of speculation, one of the Australia’s largest independent and gaming-focused pub groups, Redcape, has been sold to investment bank Moelis Australia.
The acquisition was made through one of Moelis’ managed funds, the Moelis Australia Redcape Hotel Group (MARHG). They paid $677 million to acquire Redcape Hotel Group, which comprises 25 hotels in New South Wales and Queensland, including 18 of the Top 200 gaming venues in New South Wales.
As part of the purchase, Moelis will also invest an extra $40 million into the fund and plans to launch an IPO of the fund in the future. The majority of head office staff at Redcape will be employed directly by Moelis Australia Asset Management, with some of the Redcape executives to be issued more than 400,000 ordinary shares in Moelis Australia.
The Redcape portfolio consists of twenty-two NSW pubs and three Queensland hotels. Twelve of these venues are ranked in the Top 100 most profitable gaming hotels, including the number one ranked NSW pub, the El Cortez Hotel in Canley Heights. Other venues include Minsky’s Hotel in Cremorne, the Willoughby Hotel in Willoughby North and the Eastwood Hotel in the Eastern Suburbs.
Moelis Australia’s acquisition of Redcape is expected to be finalised in July.
Sources: The Shout, PubTIC, afr.com.au