The Redcape Hotel Group (ASX: RDC) is best known for its chain of 32 local pubs, taverns and hotels that stretch the length of Queensland and New South Wales.
It's watering hole portfolio has now grown following the acquisition of the Pig 'N' Whistle Redbank Plains.
Today the Group announced that it has exchanged contracts to buy the Pig 'N' Whistle for $11.5 million before transaction costs.
The venue itself is a popular gaming venue in the high growth Ipswich area and Redbank says its acquisition will be funded from the Group's existing debt facility.
Redcape Hotel CEO Dan Brady says the buyout keeps with the company's strategy to target assets that will deliver the best financial outcomes.
"The acquisition reflects our disciplined approach to driving growth through opportunities that generate strong returns," says Brady.
"While our growth strategy is predominantly focused on freehold assets with alternate land optionality, we also have the appetite to pursue quality value accretive leasehold opportunities that meet our investment criteria and align with our objective of growing and diversifying our earnings."
Brady says the Pig 'N' Whistle will become a key point of exposure to the Ipswich region's projected strong growth.
RDC shares are currently trading at $1.11.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
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