Redcape announces the commencement of the public sale of Minskys Hotel1 - an Iconic nightlife and entertainment venue with a storied history and community nostalgia. The sale process is being managed by JLL Hotels and Hospitality Group Director John Musca and JLL Director of Capital Markets Gordon McFadyen.

The significant size of Minskys Hotel is understated to its street presence as it also boasts a desirable location in the heart of the Cremorne town centre on Sydney’s Lower North Shore. The notable Hotel is being offered to the market as a Freehold Going Concern after more than 15 years of Redcape ownership.

Redcape CEO Dan Brady said, “Minskys is a meeting place where rich and meaningful memories have been created by many, and the time has come to offer Minskys for public sale through a process whereby identifying a buyer who can usher in the Hotel’s next phase of growth and live out a new era forward for customers and the community.”

“The opportunity for an incoming operator/investor to further optimise a large licence footprint and have a more proactive entertainment lead business plan would see tremendous value add that given our scale we could not realise.”

“Consistent with other real estate classes, we recognise the strong demand for quality hotel assets in the market. Our decision to offer Minskys Hotel for sale, demonstrates our continued focus on managing our capital optimally for investors and recognising where we can redeem value and apply that capital to other opportunities or reduce debt or indeed retain proceeds for balance sheet strength we will.

“Balance sheet strength is one of the reasons for being able to support our staff wholly through recent covid disruption, which is in line with our values, a key component to the larger group’s strong growth.”

JLL Hotels & Hospitality Group has been appointed to offer for sale by Expressions of Interest, Minskys Hotel and Commercial Suites, Cremorne.

Prominently situated on Military Road in Cremorne Plaza on Sydney’s exclusive Lower North Shore, the asset is being sold for the first time in nearly 20 years, and includes the iconic freehold going concern hotel, retail suite and vast first floor commercial office suites, offering purchasers a myriad of exciting and flexible value-add uses.

JLL Hotels & Hospitality Group Managing Director John Musca, suggested that “This is a historically profitable hotel business with significant brand equity that is effectively trading on a third of its approved trading footprint. With a coveted 24-hour trading approval, unmatched patron capacity and 25 EGMs in an under-pubbed precinct, there is a compelling argument to drive the trading opportunity to the next level”.

The huge, combined properties collectively represent circa 3,344sqm of strata area with the asset value largely underpinned by the electronic gaming machines that have an estimated market value of nearly $13 million on their own. “Vendors Redcape currently occupy the entire circa 1,700sqm first floor former bars and function areas as offices, which literally present in ‘reopen and go’ condition, but equally represent a compelling opportunity to reposition the space and/or incorporate it back into the going concern hotel business”, Musca suggested.

Cremorne and the immediate areas are tightly held commercial precincts with low vacancies and strong demand. “The opportunity to re-lease or occupy the surplus space for alternate commercial, medical, leisure or retail uses in Cremorne Plaza, fully supported by a multi-level retail centre, dedicated onsite customer parking, excellent amenities and transport links, is simply unprecedented,” said JLL Director of Capital Markets Gordon McFadyen. “Even using a conservative $5,000 - $6,000p/sqm as a current value for this surplus area would unlock $10m+ of additional intrinsic value across the underlying real estate over and above the operating hotel”.

“The Cremorne Plaza is a renowned Lower North Shore destination that already hosts Supa IGA, medical and professional businesses and specialist retailers so the flexibility of uses to value-add and complement this rare offering is quite extraordinary”, McFadyen concluded.

An avalanche of recently announced hotel sales in Sydney, tightening supply and industry consolidation, along with the genuine ability to reformat the premises to release $10m+ of dormant value in the asset, underpins the circa $35m price guidance. Expressions of Interests will close on 4th May 2022 (unless sold prior).  

To request a copy of the Information Memorandum please contact one of the marketing agents JLL Hotels & Hospitality Group Managing Director John Musca and JLL Director of Capital Markets Gordon McFadyen via the contact details below.

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