Iris doubles down in Newcastle with major pub portfolio acquisition
Sam Arnaout’s Iris Capital has snapped up three hotels in Newcastle and Lake Macquarie for circa $30 million in the area’s largest ever pub portfolio transaction.
26 Nov 2018
The off-market sale was negotiated on behalf of Newcastle owners Campbell and Clare Rogers through CBRE Hotels’ Ben McDonald and Moore & Moore Real Estate’s Dean Moore.
The deal involves prominent watering holes the Sydney Junction Hotel in Hamilton, the waterfront Gunyah Hotel in Belmont and the Argenton Hotel in Glendale.
“The acquisition provides Iris Capital with immediate scale and a significant hotel footprint in an area where they have already made a significant investment through their $700 million EastEnd mall redevelopment,” Mr McDonald said.
“With 55 poker machine entitlements, a strong weekly cashflow and a large, combined site area of 7,263sqm, the portfolio presented an attractive opportunity to invest in a high growth market, with future upside.”
This could include increasing the number of poker machines entitlements throughout the portfolio in addition to a range of development opportunities.
At the Gunyah Hotel, an architectural scheme has been drafted to increase the size of the gaming room, construct a ground floor beer garden/alfresco dining area and increase the first-floor function area to include a new balcony offering uninterrupted water views.
An opportunity also exists to transform the underutilised first floor of the Sydney Junction Hotel into a function space with kitchen facilities.
Mr McDonald also noted that the portfolio offered significant depreciation benefits following recent refurbishment works.
This included a complete, architecturally-designed refurbishment of the Argenton Hotel, which was re-opened in September this year.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.