Moelis eyes ASX listing of Redcape Hotel Group
Moelis Australia is weighing up an ASX listing of the Redcape Hotel Group this year.
In July 2017, a Moelis Fund acquired the Redcape Hotel Group for $676m representing an asset level capitalisation rate of 9.6%.
Redcape is the second largest gaming hotel operator in NSW and consists of 25 hotels, 22 of which are located in NSW and 3 in Queensland.
Moelis' chief executive Andrew Pridham confirmed Moelis' intention to consider a listing for Redcape in 2018, but said the ultimate decision would depend on market conditions.
Moelis acquired Redcape from US hedge fund owners Varde Partners and York Capital.
Redcape had a property portfolio comprising of 82 properties including 71 pubs and 11 shops based mainly in Queensland and NSW, with a small number of properties in Victoria and SA in 2011.
In 2011 the hedge fund consortium bought 38% of Redcape's $645 million worth of secured senior debt for around $200m and also acquired all of the $157 m worth of debt of National Leisure and Gaming, Redcape’s major tenant for between $ 35m and $40m.
The listed pub sector was battered during the GFC.