Two ASX-listed companies have picked up pubs this week, with Hotel Property Investments (ASX: HPI) dropping $28 million on a Melbourne-based hotel and Good Drinks Australia (ASX: GDA) purchasing a venue in Eumundi, Queensland.
Backed by a $50 million placement, completed today, HPI entered into an agreement to acquire the Edwardes Lake Hotel yesterday for consideration of $28 million.
The company, which owns a portfolio of Australian pubs, is also in the advanced stages of a second acquisition worth $7.9 million.
The Edwardes Lakes Hotel is a mixed-use complex in Melbourne’s northern corridor, comprising a sports bar, gaming room, family bistro, bottle shop, kids zone and car parking.
The current major tenant of the pub is The Francis Group - an industry-leading family-run hotel operator with more than 30 years’ experience and is an existing tenant of the HPI portfolio.
“Edwardes Lake Hotel is a well-known pub located 12km from the Melbourne CBD on a large site of approximately 49,000sqm,” HPI CEO Don Smith said.
“The property has a 19.4 year WALE, a triple net lease structure and favourable 2.5 per cent fixed rental reviews which is consistent with our stated strategy of acquiring high-quality properties in attractive markets.
“We are also pleased to have agreed terms with QVC to harmonise lease structures across our portfolio so that HPI retains gaming entitlements upon lease expiry across almost all of the QVC tenanted properties. This seeks to improve the attractiveness of our venues to both existing and new tenants.”
Shares in HPI are down 4.52 per cent to $3.38 per share at 2.42pm AEST.
Good Drinks finds a Queensland home for beer brand Matso’s
Good Drinks Australia, formerly known as Gage Road Brewing, has purchased Joe’s Waterhole in the popular Sunshine Coast tourist town of Eumundi, Queensland for $5.3 million, with plans to transform the venue into a home and brewery for craft beer brand Matso’s.
The listed company says the acquisition and proposed redevelopment provides an exciting experience for locals and visitors alike, targeting an additional 2 million litres per annum of Broome-based Matso’s brands into the broader Queensland market.
GDA COO Aaron Heary says he is excited to bring the Matso’s experience to Queensland.
“Matso’s was born in Broome, but it’s a brand that resonates strongly across the country, particularly in Queensland,” says Heary.
“Both Matso’s Broome and Eumundi are heritage-listed sites and full of character, providing a link that truly speaks to the Matso’s brand.
“The redevelopment will include a facelift and installation of a fully functioning brewery that can produce the entire suite of products that Matso’s has become famous for. The existing traditional front bar will be retained and feature prominently in our new Queensland venue.”
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