MA Financial-backed Redcape has sold the Minskys Hotel and Commercial Suites in Sydney for $39 million.
The Lower North Shore property offered 3,344 sqm of strata area across two floors and generated weekly revenue in excess of $160,000.
The property also featured a separate bottle shop, 4am trading approval and 25 gaming machines.
JLL Hotels & Hospitality Group Managing Director John Musca, Senior Vice President Ben McDonald and JLL Metropolitan Sales & Investments Director, Gordon McFadyen steered the sale on behalf of the vendor.
“The opportunity to seize an asset of such quality with obvious and significant value-add potential via repositioning and/or strategic sell down, fuelled what was one of the most competitive campaigns we’ve managed in the last five years,” McDonald said.
The Minskys Hotel sale marks JLL’s seventh sale in the last month alone, following the landmark Pendle Inn Hotel transaction in Western Sydney, Lake Macquarie Tavern, Amble Inn Corindi Beach, New Ivanhoe Blackheath, Globe Hotel Deniliquin and Post Office Hotel Gulgong.
Last month, the Don Hodge Group bought the Lake Macquarie Tavern near Newcastle, NSW from prominent industry identities Paul Crosbie and Bob Warren for $33 million, reflecting a 5.4% capitalisation rate.
JLL Hotels said they were in the final stages of negotiating more than $250m in asset sales, maintaining their bullish outlook on market conditions with significant depth of capital still seeking adequate investment options in the hotel space.
Recent hotel and pub deals include Public Hospitality Group’s purchase of the Lady Hampshire hotel and pub in Camperdown, Sydney for about $11 million last month.
EG and Australian Venue Co. bought The Anglers Tavern pub in Melbourne for $23.33 million in February this year, while MA Financial Group acquired the Hotel Brunswick in Brunswick Heads near Byron Bay on the NSW North Coast for $68 million last December.
Hotel Property Investments bought a portfolio of seven pubs located throughout South Australia for $66.1 million last December, while hotel operator Fraser Short bought the Sir George Hotel in the New South Wales town of Jugiong for a reported $14 million in November last year.
