ASX-listed Hotel Property Investments (HPI) has acquired a portfolio of seven pubs located throughout South Australia for $66.1 million, representing a cap rate of 5.4%.  

The hotel investor has also sold the Acacia Ridge Hotel in Brisbane for $25 million to partially fund its acquisition.  

HPI, which already had three assets in SA, purchased the SA portfolio from Saturno Group, in conjunction with Australian Venue Company (AVC).

AVC has purchased the operating businesses on new 15-year leases with two 15-year extension options.  

The deal is expected to close in February next year.  

On the Acacia Ridge Hotel sale, HPI said it had acquired the property for $20 million just in January 2020. 

The company sold the Acacia Ridge property on a 4.44% current passing rent yield, yet it acquired the property on a 5.5% initial yield last year.  

HPI expects the deal to settle in February next year. 

The transaction comes as HPI prepares to invest $30.4 million into a significant capex program across its portfolio.  

The program will see HPI provide QVC with funding for major renovation works at 12 venues with an upfront payment this month.  

Last week Singaporean group Well Smart Investment Holdings sold the Mantra Terrace Hotel in Brisbane for a speculated c$16 million.  

Earlier this month, hotel operator Fraser Short bought one of Australia’s oldest hospitality venues, The Sir George Hotel in the New South Wales town of Jugiong for a reported $14 million.