Singo's Australian Pub Fund buy Brisbane’s The Exchange Hotel for $35m-$40m
Tourism Australia chairman Geoff Dixon, adman John Singleton and venture capitalist Mark Carnegie have bought Brisbane’s The Exchange Hotel for a reported price around $34 million.
They bought the popular drinking spot, known as The Stockie, from Greg Maitland’s Independent Pub Group who bought the property holding in 2011 for $18 million.
The $35 million plus sale of the 911 square metre site at 131 Edward Street included 25 gaming machine authorities, a late night license, and DA approval for an outdoor terrace.
The pub is the 11th addition to their now $180 million Australian Pub Fund empire, which was co-founded by co-founded by Paddy Coughlan and Andrew Kelly. APF is scheduled for a public listing in the first half of 2014.
Coughlan told The Sydney Morning Herald the latest purchase continued their goal of acquiring pubs underpinned by blue-chip real estate with an upside through superior management practices.
"The purchase price in the $33-34 million represents an entry yield of between 13.5 per cent to 13.9 per cent, with a yet to be activated development application/approval for a new outdoor mezzanine level that will hold an additional 300 patrons," Mr Coughlan said.
"We now own and operate 11 hotels across Sydney and Brisbane with total group revenue approaching $95 million per annum, while current freehold property assets are around $180 million.
In April they bought Brisbane’s Elephant & Wheelbarrow Hotel for $27 million.
They had previously bought Sydney hotels including the Bristol Arms in Sydney’s Sussex Street for $7.7 million which had previously traded in 2006 at $14 million.
This latest acquisition was negotiated off-market by John Musca from Jones Lang LaSalle hotels, according to The Australian Financial Review.
Other pubs in their empire include Kinselas in Darlinghurst, the Toxteth in Glebe, the Bellevue in Paddington, the Vic at Enmore, the Marlborough in Newtown, Unity Hall in Balmain as well as the Como and the Peakhurst Inn in Sydney's south.