MA Redcape Hotel Fund (Redcape) continues to strengthen its portfolio with the acquisition of two more freehold assets – The Prince Consort in Brisbane’s Fortitude  Valley and Saltwater Creek Hotel in Helensvale – for a combined $66 million.

This follows the  recent purchase of three other venues in the South East Queensland¹, as Redcape continues its accretive redeployment of recent sale proceeds, enhancing earnings, and driving long-term  value for its investors.

The acquisition of The Prince Consort, a landmark venue originally established in 1888, adds a  high-profile, multi-faceted hospitality asset to the Redcape portfolio. The heritage-listed venue  is renowned as one of Brisbane’s best, having been awarded Queensland’s Hotel of the Year in 2023.

The large-format venue is a premier entertainment destination in Brisbane’s thriving  Fortitude Valley precinct. TBRE’s Tony and Molly Bargwanna were the exclusive selling agents.

Saltwater Creek Hotel, located in Helensvale, is a well-established suburban pub catering to a  strong local community and growing Gold Coast corridor. The venue presents an outstanding  growth opportunity through Redcape’s refurbishment capability, while strengthening the group’s  expanding retail liquor presence, making it an ideal addition to Redcape’s portfolio.

These purchases follow the December acquisition of three other Queensland pubs, bringing  Redcape’s recent expansion in the state to five new venues. A sixth as yet unnamed acquisition  is under conditional contracts. Settlement of these latest acquisitions is expected within the  March quarter of 2025, taking the total investment to $145 million.

Redcape has been actively managing its portfolio in recent times to diversify its earnings and to  generate greater distributions for investors. As a result, the Fund has upgraded its quarterly  distribution target to 2.50 cents per unit, a 25% increase on last year, and builds on the Funds  12% p.a.²return since its inception in 2017.

In a recent update to investors, Redcape also announced that the Fund has cleared all investor redemptions.

Chris Unger, Managing Director of MA Redcape Hotel Fund, said: “The Prince Consort and  Saltwater Creek both present outstanding opportunities to enhance our portfolio and team with  their unique market positioning and earnings potential. Brisbane’s Fortitude Valley is a dynamic hospitality hub, and The Prince Consort’s reputation as a multi-experience entertainment venue makes it an exciting long-term addition to the portfolio.

"Likewise, Saltwater Creek’s strong local following aligns with our model to own and operate pubs that are at the heart of their communities, and we can’t wait to invest capital into the venue to enhance the customer  experience and grow the business.”

Redcape’s impressive performance across its pubs during 2024 continues to validate its investment strategy. Like-for-like pub earnings were up 11.5% year-to-date and the ~15% Total  Return target³ was reaffirmed.

“We are seeing continued strong results in our venues, and these acquisitions position us well  for further improvement in investor returns. Our operational initiatives are proving effective at  introducing new customers and our refurbishment program is also driving improved earnings,”  Unger added.

Redcape remains active in pursuing additional acquisitions and refurbishments, with over $30 million in growth capital planned for FY25. 

TBRE’s Tony and Molly Bargwanna were the exclusive selling agents.